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House Republicans Advance Sweeping Student Loan Overhaul

The Student Success and Taxpayer Savings Plan moves forward after a party-line committee vote, proposing major changes to loan limits, repayment plans, and Pell Grant eligibility.

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Chairman Tim Walberg chairs the House Education Committee markup for the markup of the Fiscal 2025 Budget Resolution on April 29, 2025.
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Overview

  • The House Education and Workforce Committee passed the GOP's Student Success and Taxpayer Savings Plan, aiming to save $330 billion and support Trump-era tax cuts.
  • The proposal consolidates federal student loan repayment options to two plans, eliminating Biden’s SAVE plan and extending repayment terms to up to 30 years.
  • Undergraduate and graduate borrowing would be capped at $50,000 and $100,000 respectively, with Parent PLUS loans also limited for the first time.
  • Pell Grant eligibility would require students to take at least 30 credit hours annually, restricting access for part-time students but expanding grants to short-term workforce programs.
  • Colleges would face financial accountability for unpaid student loans, with funds redistributed to higher-performing institutions under new risk-sharing provisions.