The GOP unveils plan for higher-education reform
Image: Andrew van Huss/Wikimedia Commons
This week, House Republicans officially proposed a series of wide-ranging higher education reforms as part of a wider legislative package aimed at carrying out President Trump’s agenda.
A quick crash course
The House Education and Workforce Committee has been tasked with finding $330 billion in savings from programs under their jurisdiction to help offset Trump’s tax plan.
In pursuit of that goal, the GOP’s new the Student Success and Taxpayer Savings Plan features several proposed changes to higher education, including:
- Caps on federal student loans. The GOP plan would limit the total amount of federal loans a borrower can take out to $50,000 for undergrads, $100,000 for graduate students, and $150,000 for students seeking to become a doctor or lawyer.
- Fewer loan repayment plans. The measure would eliminate the dozen or so existing student loan repayment plans and replace them with two pared-down options: a fixed monthly amount paid over a certain period of time based on debt load, or an income-based “Repayment Assistance Plan.”
- A revamped Pell Grant system. Republicans’ plan would expand the Pell Grant—a financial aid grant of up to ~$7,400/year used by ~6 million Americans—to cover short-term workforce training programs. It would also require full-time Pell Grant students to be enrolled in at least 30 credit hours/year, up from previous requirements of 24 credit hours/year.
The plan has its share of detractors. Consumer advocates say the GOP’s proposed changes would further restrict poorer Americans’ access to higher education by slashing financial aid programs, eliminating basic consumer protections, and making it harder to repay student loan debt.
Looking ahead…The higher education plan is part of congressional Republicans’ planned “big beautiful bill” that includes funding for tax cuts, border security, and defense. The GOP has set a self-imposed deadline of July 4 to approve the final bill.
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Sprinkles from the Left
- Some commentators argue that Congress is right to give serious thought to overhauling the federal government’s flawed student loan system for the longer term, since too many American students have loans they can’t repay.
- Others contend that Republicans’ new higher education bill makes college less affordable for students—ignoring Americans’ top concern about higher education, which is out-of-control prices to attend.
- “The Student Lending Mess Needs to Be Fixed” –Bloomberg Editorial Board
- “How the House Reconciliation Bill Harms the Average American Family” –Rachel Fishman, EdCentral
- “Trump's student loan plans are an anti-stimulus for a struggling economy” –Symone D. Sanders-Townsend, MSNBC
Sprinkles from the Right
- Some commentators argue that colleges have turned into a government-created ripoff where young adults are left with a massive debt that jeopardizes their ability to achieve the American dream—and Republicans are right to reign in the federal education bureaucracy.
- Others contend that any anger over the government’s efforts to reform the federal student loan process should be directed at colleges and universities, who charge enormous sums for a four-year education and use the funds for bloated administrative salaries.
- “Trump’s crackdown on colleges is a good start — but more is needed to fix higher ed” –NY Post Editorial Board
- “Outrage over student loans should be aimed at colleges” –Boston Herald Editorial Board
- “Trump is fulfilling an education promise Republicans made for decades” –Christopher F. Rufo, Manhattan Institute
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