On April 29, the House Committee on Education and Workforce held a markup on the Student Success and Taxpayer Savings Plan, their section of the House’s FY25 budget reconciliation package. The legislation includes proposals to rework the federal student loan system while providing over $330 billion dollars in savings over ten years. Notably, the legislation includes language mirroring AOA-supported H.R.2028, the Resident Education Deferred Interest (REDI) Act, and authorizing deferred student loan interest accrual for four years during residency.
Unfortunately, the bill would also terminate the Public Service Loan Forgiveness (PSLF) eligibility of residents participating in approved programs. The AOA joined over 70 national organizations in urging Congress to protect the Public Service Loan Forgiveness (PSLF) program. PSLF is a critical recruitment and retention tool for physicians, teachers and first responders, particularly in underserved areas. The coalition letter emphasized PSLF’s role in ensuring access to care and services in rural and low-income communities. Restricting eligibility or cutting resources would jeopardize a program that has helped thousands of public servants continue their careers while managing student loan debt.
As the budget reconciliation process moves forward, AOA will continue to monitor this legislation and take action as additional details emerge.
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