Statement: Advocates Condemn Passage of the Budget Reconciliation Bill, Creating Financial Insecurity For Millions of Americans with Student Loan Debt

SDCC
Jul 3
2 min read

FOR IMMEDIATE RELEASE

July 3, 2025

Contact:

Natalia Abrams

Washington D.C. – The Student Debt Crisis Center strongly opposes the harmful Budget Reconciliation Bill passed by Congress. This bill eliminates income-driven repayment programs, graduate plus loans, and borrower protections for 45 million Americans, ultimately pushing millions of student loan borrowers into default and severe financial consequences.

“The student debt system is in the worst state we've seen since our organization began," said Natalia Abrams, SDCC President. "Congress should be protecting vulnerable Americans burdened by student loans, but instead, this dangerous bill abandons millions of borrowers, leaving them with few, often inaccessible repayment options and deepening their financial insecurity.”

“As this bill prepares to cut taxes for billionaires, it will undoubtedly jeopardize the economic well-being of nearly 45 million Americans burdened by student loan debt,” adds SDCC Executive Director Sabrina Calazans. “Cuts to existing programs and plans will cause monthly payments to increase significantly and create further chaos; this is a recipe for disaster and default, especially for low-income folks and working-class families who are already living paycheck to paycheck. Now more than ever, the $1.7 trillion student loan crisis must be addressed, and it must be done by prioritizing everyday Americans, not billionaires.”

Since the start of the reconciliation process, SDCC supporters have sent over 77,000 letters to Congress members urging them to uphold their commitment to defending the best interests of Americans with student debt, students, and families.

For more information or to schedule an interview, please contact Natalia Abrams at info@studentdebtcrisis.org.

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ABOUT Student Debt Crisis Center

Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.