Fifty-six percent of homeowners are concerned about the “One Big Beautiful Bill” and its impact on student loans

Palo Alto, CA — Student debt remains one of the biggest financial headwinds for U.S. households, and new federal rules are changing how borrowers think about repayment. According to a new survey from Point, 56% of U.S. homeowners say they are concerned about the “One Big Beautiful Bill” (OBBB) passed by Congress in July and how it may affect their ability to meet student loan obligations.

Over the past two decades, student loan balances have ballooned from $260 billion in 2004 to $1.6 trillion in 2025. Two in five (42%) homeowners are currently paying student debt for themselves or a family member, and 37% expect to take on education debt in the future. With the typical student loan payment hovering around $500 per month, nearly a quarter of what a typical homebuyer pays on their mortgage, seven in 10 homeowners with student debt say it significantly impacts their household finances. Among borrowers aged 55 and older, that figure rises to eight in 10.

The OBBB consolidates existing federal income-based repayment programs into a single plan that extends forgiveness timelines, reduces deferment options, and limits income exemptions. These changes mean that most borrowers—particularly graduate students and higher earners—will repay more of their debt over the life of the loan. In Point’s survey, more than three-quarters (76%) of homeowners with student loan debt said they are concerned the OBBB will increase their financial burden.

Shifting calculus: student debt repayment and home equity
Historically, paying off student debt early with home equity rarely made financial sense, given forgiveness pathways and deferment options. But with OBBB narrowing relief programs, that equation is changing. Only 48% of homeowners with student debt say they plan to stick to the standard repayment plan, while 38% plan to repay early. Among those sticking with standard repayment, 14% plan to refinance and 12% expect loan forgiveness — both options that will be harder to access under OBBB.

“Student loan rules are entering a new era,” said Aaron Terrazas, economist for Point. “With forgiveness programs shrinking, homeowners who have student debt will need to reassess their repayment strategies. For many, tapping home equity may become a more attractive path to pay down student debt sooner and avoid taking on new debt altogether. The changing math of prepaying education debt means that in the coming years, we are likely to see more borrowers pay off their student debt as soon as they can.”

That shift is already underway. One in 10 homeowners say they plan to use home equity to pay off student debt. New financial tools, such as Home Equity Investments (HEIs), allow homeowners to access their equity without taking on new debt or monthly payments. Historically, around 5% of HEI customers through Point have used their funds for education-related debt repayment — but with the sweeping changes to student loan financing, interest in HEIs as an alternative is likely to grow.

Read the entire report here. 

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