Overview

• The bill would hold colleges financially responsible for a portion of defaulted loans based on program-level outcome metrics.
• It caps lifetime federal student borrowing at $200,000 per student and $50,000 in parent loans to discourage excessive debt.
• Critics say eliminating subsidized loans, raising minimum Pell Grant course loads and removing Grad PLUS funding could restrict access for low-income and part-time students.
• The replacement Repayment Assistance Plan still permits loan cancellation after 360 payments and waives unpaid interest, prompting calls for stricter forgiveness limits.
• Senate proposals include lowering borrowing caps, streamlining repayment plans, expanding Pell eligibility for workforce-aligned programs and curbing Public Service Loan Forgiveness.