Democrats Take Congress: What It Means For Your Student Loans

Democrats won control of both chambers of Congress in Tuesday’s midterm elections, according to the latest results. The result puts the student loan and school plans Democrats laid out before the vote back on the table. This includes the flurry of potential legislation around student loan interest rates, Pell grants, and other higher education reforms.

However, for student loan borrowers, the win changes less than it seems. President Trump still must sign or vetoes every bill, and the Repayment Assistance Plan (RAP) created by the 2025 law stays in place unless he agrees to change it.

And, surprising to many voters, there are no real Democratic proposals to change student loan repayment plans or offer any new types of loan forgiveness programs. Here is what is on the table and what borrowers should expect.

Who Won Control Of Congress On November 3?

Democrats won majorities in both the House and the Senate, ending two years of Republican control. The new Congress will be sworn in on January 3, 2027, so the new Parent PLUS limits and other 2025 changes stay in place for now.

It’s important to note that even if the Democrats move quickly to pass legislation (and assuming President Trump signs that legislation), it’s likely that changes wouldn’t even go into effect until 2028.

Who Will Lead The House Education Committee?

Three Democrats are competing to chair the House Committee on Education and Workforce, Inside Higher Ed reports. Representative Bobby Scott of Virginia is the current ranking member, and he chaired the committee after Democrats won the House in 2018. Representatives Suzanne Bonamici of Oregon and Jahana Hayes of Connecticut are challenging him for that position.

The House Committee on Education and Workforce is the body that oversees student loan forgiveness programs and repayment rules. They would also be the one that could issue subpoenas to the Education Secretary and other members to champion oversight of the Department of Education.

Scott and Bonamici both want to double the maximum Pell Grant from $7,395 to $14,790. Both also want to repeal the 2025 borrowing limits, which hold some graduate students to $20,500 a year and parents to $20,000 per year per student.

Scott said the focus will be on “Pell Grants, student loans and interest on student loans.”

What Needs President Trump’s Signature?

Every item on the Democratic “wish list” needs President Trump’s signature. Trump told CBS News last night he would “just veto everything” if Democrats refused to work with him. Overriding a veto takes a two-thirds vote in both chambers. And most bills also need 60 votes to clear the Senate filibuster.

Because of this, any change to RAP or the creation of a new repayment plan will require the President to be on board.

Interest rates may be the best shot at a deal. President Trump has said he “might support” a Republican plan to cap federal student loan interest at 2.5%. Many House Democrats back a separate bill that sets the rate at 0%. Current federal student loan interest rates are 6.52% for new undergraduate student loans and 9.07% for Parent PLUS loans in 2026-27.

Democrats can act alone on oversight. Committee leaders expect to subpoena Education Secretary Linda McMahon and review the transfer of Education Department programs to other agencies. Hearings can pressure the department and expose issues, but they can’t rewrite federal student loan repayment plans.

Spending bills are a middle ground. The Pell Grant faces a projected $17 billion shortfall for fiscal year 2027 just to keep the current $7,395 maximum award. Congress writes the spending bills, but the President still signs them.

What Are Borrowers Asking For That Democrats Aren’t Offering?

A common theme that we are hearing on our articles, our social media posts, and our live streams is that borrowers are looking for Congress to act on student loan repayment plans and student loan forgiveness. What’s frustrating is neither appears on the Democratic agenda.

Those two requests dominated yesterday’s r/TheCollegeInvestor thread on our coverage. One of the most upvoted replies was simple: “I just want the SAVE program back for everyone.” The SAVE plan ended by court order in March 2026.

Interest rates also drew a lot of comments. Readers want Congress to cap rates or cut them to zero. A rate cut wouldn’t lower the monthly bill for borrowers on income-driven repayment plans, since income sets those payments. RAP already waives unpaid monthly interest for borrowers who make their payment, which our RAP breakdown covers.

Parents raised a third issue: “They need to have some sort of income based repayment for Parent Plus Loans.” Parent PLUS loans can’t be repaid under RAP, and new Parent PLUS loans issued after July 1, 2026 don’t qualify for Public Service Loan Forgiveness. This has been a sticking point for years, and we cover the whole legislative background on why Parent Plus loans are consistently excluded from income-driven repayment.

Before the election, Democratic leadership hadn’t put forward any proposal to revise RAP or offer a repayment plan of its own. The new One Big Beautiful Bill Act also prevents the president or the Department of Education from creating one on their own. Future repayment plans all have to be created by an act of Congress. And any new repayment plan would face the same veto threat, and the Supreme Court struck down one-time cancellation in Biden v. Nebraska in 2023. The College Investor’s work was cited in that case.

That leaves the student loan forgiveness programs that current exist today, led by PSLF but still includes hundreds of options.

Not every reader thinks there should be more federal money. Some backed the new Parent PLUS caps as a check on colleges raising tuition, and others called forgiveness unfair to borrowers who already paid.

What Should Borrowers Do Right Now?

Keep making payments under the student loan repayment plan that aligns with your goals, and don’t wait on Congress for relief. Borrowers with student loans from before July 1, 2026 can choose between RAP and IBR until July 1, 2028. Our RAP vs. IBR comparison shows the cheaper plan flips around $80,000 to $90,000 of adjusted gross income.

Run your own numbers in the RAP calculator before you switch. Recertify your income yourself 45 to 30 days before your annual deadline, since automatic recertification doesn’t account for family size changes.

Public service workers should keep certifying employment using our PSLF strategy guide for 2026. PSLF remains tax-free, while most other forgiveness became taxable again in 2026.

The College Investor estimates about half of borrowers qualify for some total or partial forgiveness under current law. Check the full list of student loan forgiveness programs before assuming a new law from Congress is your only hope.

Frequently Asked Questions

Can Democrats Bring Back The SAVE Plan?

Not on their own. Restoring SAVE or a creating a similar repayment plan would take a new law signed by President Trump, or a two-thirds override vote in both chambers. The SAVE plan ended by court order in March 2026. And the OBBBA requires new repayment plans to be passed by Congress and not created by executive action.

Would A Lower Interest Rate Cut My RAP Payment?

Not directly. RAP payments are set by adjusted gross income and dependents, not by the interest rate. A rate cut would mainly change how fast the balance falls, which you can test in the RAP calculator.

Will Federal Student Loan Interest Rates Go Down?

Rates on existing federal student loans stay fixed until the student loan is paid off. New rates reset each July based on the May 10-year Treasury auction, and changing that formula takes a new law. The 2026-27 federal student loan interest rates run from 6.52% to 9.07%. Interest rates have increased this year, and if they continue this way for the next six months, next year’s rates could be even higher.

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