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Working Draft — Version 2, 2026 · Policy framework, not an introduced bill

Plan for ProsperityNonpartisan fiscal framework

B6 · Pillar B · Spending Efficiency

Higher-education subsidy restructuring

Restructure federal student-loan and higher-education subsidies to address institutional cost inflation while preserving access: outcome-based accountability, simplified income-driven repayment, modified Public Service Loan Forgiveness, and federal-state community-college coordination.

All policies / Efficiency

10-year fiscal
−$200BSavings

$100B–$300B · Medium confidence

Implementation
Years 1–5
Y1Y10Y20
Middle class
Variable

IDR expansion helps high debt-to-income borrowers; accountability may adjust some institutions.

Planetary
Neutral

No material climate effect.

Global precedent

Australia’s HECS-HELP income-contingent loans (since 1989). England’s post-2012 tuition and loan reforms are an additional, mixed reference point.

Lead mechanism

Department of Education; Senate HELP; House Education and Workforce.

Bipartisan framing

Conservative case

Institutional accountability and outcome-based metrics for federally subsidized education.

Progressive case

Reduced student-debt burden and expanded access.

Figures in this framework are illustrative directional estimates derived from publicly available data and conventional Congressional Budget Office budget-window logic. They are not official CBO scores. Any provision adopted from this framework would require formal CBO scoring before legislative consideration. This document is a policy white paper, not an introduced bill.