The House reconciliation bill swings its biggest axe at the student loan programs. The bill proposes to eliminate loan programs, limit borrowing, and overhaul repayment options for students. For undergraduates, one of the biggest changes would be the elimination of the subsidized loan program. This move will likely force students into the unsubsidized loan program and/or send them looking for private student loans. It is projected to save $14 billion dollars over the next 10 years.
But what will this change mean for the students themselves? To answer that question, we compare how much a student would repay under current law with the amount they would owe without a subsidized loan program.
First, we assume a student with adequate financial need borrows the maximum unsubsidized loan each year ($2,000) and the maximum subsidized amounts ($3,500, $4,500, and $5,500) at a consistent 6.5% interest rate for the four years. Here is what the estimated current repayment amount might look like for a student:
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Subsidized loans borrowed ($3,500, $4,500, $5,50, $5,500)
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$19,000
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Unsubsidized loans borrowed ($2,000 x four years)
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$8,000
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Interest accrued on unsubsidized loans (including six-month grace period)
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$1,560
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Total to be repaid
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$28,560
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Second, we look at the same student if the subsidized program was eliminated and interest was accruing for four years on the total $27,000 borrowed. Here is what the repayment amount looks like for the same student:
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Unsubsidized loans borrowed ($5,500, $6,500, $7,500, $7,500)
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$27,000
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Interest accrued over four years (including six-month grace period)
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$5,039
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Total to be repaid
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$32,039
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The interest figures calculated were derived with the Sallie Mae Accrued Interest Calculator. The student’s total amount to repay will increase by approximately 12% if the federal government eliminates subsidizing the interest while the student is enrolled. The amount that must be repaid will only grow when a student takes longer than four years to complete a bachelor’s degree. Under the standard 10-year repayment program, the student’s monthly payment would increase by approximately $40 per month, for a total of $4,800* more repaid over the 10 years in a standard repayment plan.
Student debt level is already a huge concern to students as they consider a path in postsecondary education. The National College Attainment Network (NCAN) would not support any policy changes that would increase the amount a student repays compared to today’s levels. In addition to the standard repayment program, we need to keep options for students who have economic situations that would not allow them to make payments at the standard repayment amounts.
NCAN will continue to monitor the reconciliation process and keep our members updated with major developments.
*This piece was updated on 6/10/26 to change this amount from $6,000. This change was made to correct a calculation error in how much more a student would repay over ten years if subsidized loans were eliminated.