One provision in Republicans’ “big beautiful” bill would narrow the relief options for struggling student loan borrowers. House and Senate Republicans both call for the elimination of both the economic hardship and unemployment deferment.
Those deferments allow federal student loan borrowers to pause their monthly bills during periods of joblessness or other financial setbacks, often without interest accruing on their debt.
Less attention has been paid to the GOP plan to do away with the deferments than its proposals to eliminate several student loan repayment plans and to establish a minimum monthly payment for borrowers.
The House advanced its version of the One Big Beautiful Bill Act in May. The Senate Committee on Health, Education, Labor and Pensions released its budget bill recommendations related to student loans on June 10. Senate lawmakers are preparing to debate the massive tax and spending package.
Here’s the inflation breakdown for May 2025
