Overview

• The Republican-led House Education and Workforce Committee has advanced the Student Success and Taxpayer Savings Plan, marking the most significant proposed changes to federal student financial aid in decades.
• Key provisions include annual and lifetime borrowing caps, with limits set at $50,000 for undergraduates, $100,000 for graduate students, and $150,000 for professional degrees.
• The bill eliminates Grad PLUS and unsubsidized undergraduate loans, introduces stricter Pell Grant eligibility requirements, and expands grants to short-term workforce programs.
• Institutions would face new accountability measures, requiring them to reimburse the government for a percentage of unpaid student loans based on graduate outcomes starting in 2027.
• The proposal now heads to the Senate, where a more moderate Republican version of the bill awaits reconciliation, potentially altering key provisions before final passage.