The House Education and Workforce Committee took the first notable action on higher education affordability in several years by passing on Jan. 31 the College Cost Reduction Act (HR 6951). The Republican-led legislation would hold colleges accountable for the cost of education by implementing cost-sharing requirements on institutions if students fail to repay their loans, change the cap on the amount of federal aid a student may receive and pare down the federal student loan repayment plans into two plans: a standard 10-year “mortgage-style” plan and one income-driven repayment plan. The legislation will move to the House floor for a vote, but action is not anticipated in the Senate. House Democrats introduced their own version of higher education reform called the Roadmap to College Student Success which highlights Democratic priorities for college affordability and includes doubling the Pell Grant, making two years of community college free, and capping federal student loan interest rates at 5 percent.
AAOMS continues to advocate for the Resident Education Deferred Interest (REDI) Act (S 704/HR 1202), which would allow physicians and dentists to defer their federal student loans interest-free while in residency. The REDI Act does not provide forgiveness of any student loan debt.
