May 10, 2024 Cost Estimate As ordered reported by the House Committee on Education and the Workforce on January 31, 2024 View Document511.11 KB At a Glance H.R. 6951, College Cost Reduction Act As ordered reported by the House Committee on Education and the Workforce on January 31, 2024 By Fiscal Year, Billions of Dollars20242024-20282024-2033Direct Spending (Outlays)-32.3-91.7-185.5Revenues000Spending Subject to Appropriation (Outlays)*-0.3-1.8Increases net direct spending in any of the four consecutive 10-year periods beginning in 2034?NoStatutory pay-as-you-go procedures apply?YesMandate EffectsIncreases on-budget deficits in any of the four consecutive 10-year periods beginning in 2034?NoContains intergovernmental mandate?Yes, Under ThresholdContains private-sector mandate?NoEstimates are relative to CBO’s May 2023 baseline; * = between zero and $50 million.The bill wouldReplace existing income-driven repayment (IDR) plans with a new IDR plan for federal student loans originated after June 30, 2024Prohibit the adoption of new regulations that would increase costs for the student loan program or markedly affect the economyEliminate PLUS loans to parents and graduate students and amend annual and aggregate limits on borrowing in other types of loansRequire postsecondary institutions to make payments to the federal government, based on the repayment of student loans by students at each institutionRepeal certain regulations concerning student loans and postsecondary institutionsImpose intergovernmental mandates by preempting state and local laws on federal student loan servicersEstimated budgetary effects would mainly stem fromEliminating existing IDR plansEliminating PLUS loans to parents and graduate students and instituting new limits on student loan borrowingRepealing certain regulations and preventing future administrative actions related to student loansReduced borrowing in response to payments required of postsecondary institutionsAreas of significant uncertainty includeStudents’ and institutions’ responses to new incentives and penalties under the bill Data and Supplemental Information Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Legislative Information Available From Congress.gov Related Publications H.J. Res. 88, a joint resolution providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Education relating to “Improving Income Driven Repayment for the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan (FFEL) Program”September 18, 2023 Costs of the Proposed Income-Driven Repayment Plan for Student LoansMarch 13, 2023
H.R. 6951, College Cost Reduction Act As ordered reported by the House Committee on Education and the Workforce on January 31, 2024 By Fiscal Year, Billions of Dollars20242024-20282024-2033Direct Spending (Outlays)-32.3-91.7-185.5Revenues000Spending Subject to Appropriation (Outlays)*-0.3-1.8Increases net direct spending in any of the four consecutive 10-year periods beginning in 2034?NoStatutory pay-as-you-go procedures apply?YesMandate EffectsIncreases on-budget deficits in any of the four consecutive 10-year periods beginning in 2034?NoContains intergovernmental mandate?Yes, Under ThresholdContains private-sector mandate?NoEstimates are relative to CBO’s May 2023 baseline; * = between zero and $50 million.The bill wouldReplace existing income-driven repayment (IDR) plans with a new IDR plan for federal student loans originated after June 30, 2024Prohibit the adoption of new regulations that would increase costs for the student loan program or markedly affect the economyEliminate PLUS loans to parents and graduate students and amend annual and aggregate limits on borrowing in other types of loansRequire postsecondary institutions to make payments to the federal government, based on the repayment of student loans by students at each institutionRepeal certain regulations concerning student loans and postsecondary institutionsImpose intergovernmental mandates by preempting state and local laws on federal student loan servicersEstimated budgetary effects would mainly stem fromEliminating existing IDR plansEliminating PLUS loans to parents and graduate students and instituting new limits on student loan borrowingRepealing certain regulations and preventing future administrative actions related to student loansReduced borrowing in response to payments required of postsecondary institutionsAreas of significant uncertainty includeStudents’ and institutions’ responses to new incentives and penalties under the bill
