Congressional Republicans aim to cut billions in federal spending by overhauling student loan repayment and reducing federal student aid. The House Education Committee approved a reconciliation bill to save $350 billion over 10 years, proposing repeals of subsidized loans and the Grad PLUS program, capping federal aid, and tightening Pell Grant eligibility. The package enforces “skin-in-the-game” for colleges, holding them partly accountable for loan non-repayment. It also eliminates the Biden administration’s SAVE plan, replacing it with two repayment options. Critics warn these changes risk making college costlier, limit access, and push borrowers toward risky private loans, undermining affordability and protections.
WASHINGTON — Students and families could see significant changes to how student loans are repaid as well as cuts to federal student aid as congressional Republicans look to slash billions of dollars in federal spending to offset the cost of President Donald Trump’s sweeping agenda.
Republicans are using the complex reconciliation process to move a package through Congress with simple majority votes in each chamber, avoiding the Senate’s 60-vote threshold that generally requires bipartisanship.
The House Committee on Education and Workforce approved its portion of the package in a party-line vote in April, pushing GOP lawmakers a step closer to potentially securing key changes to student loan repayment options and Pell Grant eligibility.
Chairman Tim Walberg, a Michigan Republican, said the 103-page bill would save taxpayers more than $350 billion over 10 years and “bring much-needed reform” on “simplified loan repayment, streamlined student loan options, and accountability for students and taxpayers.”
But the bill has drawn criticism and worry from student advocates and congressional Democrats over how the proposed changes would impact higher education affordability and access.
Aissa Canchola Bañez, policy director at the Student Borrower Protection Center, told States Newsroom that the advocacy group was “really troubled to see House Republicans take such a drastic approach to their efforts to address the college affordability crisis.”
“Unfortunately, this bill will make college more expensive for families and students and will make it significantly more risky for students and families just trying to pay for college, and it’s also going to make student loan debt significantly more expensive for millions of borrowers across the country,” she said.
Rep. Bobby Scott, ranking member of the committee, echoed the concerns of student advocacy groups.
The Virginia Democrat said the bill would “increase costs for colleges and students,” “limit students’ access to quality programs” and take “all the so-called ‘savings’ to pay for more tax cuts for the wealthy and the well-connected.”
Here’s a breakdown of some of the major changes outlined in the House education panel’s portion of the package:
The bill would repeal subsidized loans — where the federal government pays the interest on the loan while a borrower is in school — for borrowers beginning July 1, 2026, according to the committee’s summary.
For unsubsidized loans disbursed on or after July 1, 2026, the maximum annual loan limit would be amended to the “median cost of students’ program of study.”
The total amount of federal student aid a person could receive annually would also be capped at the “median cost of college.” According to the committee, this is defined as “the median cost of attendance for students enrolled in the same program of study nationally and calculated by the (Education) Secretary using data from the previous award year.”
Aggregate limits, or the maximum amount a student can borrow, would cap at $50,000 for undergraduate programs; $100,000 for graduate programs; and $150,000 for professional programs, such as law or medical school.
The bill also repeals the Grad PLUS program and places new restrictions on Parent PLUS loans.
Undergraduate students would be required to “exhaust their unsubsidized loans before parents can utilize Parent PLUS to cover their remaining cost of attendance,” according to the panel’s summary.
Canchola Bañez noted that the repeal of the Grad PLUS program would increase the likelihood that students would have to take out loans in the private market to fill gaps they would have normally filled by using Grad PLUS loans.
“We know that private loans have much less protections and consumer protections for borrowers,” she said, adding that “the more we push folks out of the federal market and into the private market, the less students and borrowers have access to those protections should things go wrong after school.”
‘Skin-in-the-game accountability’
The package also proposes “skin-in-the-game accountability” for colleges and universities, and institutions would have to pay the federal government “a percentage of the non-repayment balance associated with loans disbursed on or after July 1, 2027,” according to the panel’s summary.
Preston Cooper, senior fellow in higher education policy at a right-leaning think tank, the American Enterprise Institute, said “essentially, for colleges whose borrowers require some of this repayment assistance, if their payments are too low to cover interest on their loans, or they require that principal credit, the colleges will have to cover a share of the costs.”
“They won’t have to cover all the costs — the government will pay some of it — but they will have to cover some of the cost of providing borrowers with that repayment assistance, and I think the idea here is to create better incentives for colleges to make sure that they’re not loading students up with unnecessary debt,” he said.
Pell Grant eligibility
The bill redefines full-time enrollment for Pell Grants — a federal government subsidy that helps low-income students pay for college.
The legislation raises the minimum number of credit hours to qualify for the maximum Pell Grant award from 12 credit hours per semester to 15 credit hours. Students would also be ineligible for a Pell Grant if their Student Aid Index — a formula-based number to determine financial aid eligibility — equals or surpasses twice the amount of the maximum Pell Grant.
Pell Grant eligibility would also be expanded for those in short-term programs between eight and 15 weeks long.
Repealing the SAVE plan
The bill creates just two repayment plans — a Standard Repayment Plan and a Repayment Assistance Plan, while eliminating the Biden administration’s Saving on a Valuable Education, or SAVE, plan, which is currently tied up in federal court.
The Standard Repayment Plan includes fixed monthly payments and repayment terms between 10 to 25 years depending on how much one borrows, per the committee, while the Repayment Assistance Plan calculates payments based on a borrower’s total adjusted gross income.
The Repayment Assistance Plan also includes a minimum $10 monthly payment and “offers balance assistance to borrowers making their required on-time payments by waiving unpaid interest and providing a matching payment-to-principal of up to $50,” according to the panel.
Cooper said the Repayment Assistance Plan “fixes one of the long-standing problems in the income-driven repayment system for student loans, which is that a lot of borrowers’ payments don’t cover their accrued interest, which means that they see their balances rise over time.”
Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Louisiana Illuminator maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com.
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Right
The content is reporting on the proposed changes to federal student aid and loan repayment options under Republican-led efforts, focusing on how these changes align with President Trump’s agenda. The tone is mostly factual but highlights both Republican claims of cost-saving reforms and Democratic concerns about increased costs for students. The inclusion of statements from right-leaning and left-leaning sources provides a balanced representation of the issue, though the framing of the proposed changes as “drastic” and detrimental to students’ financial well-being suggests some opposition to the policy from those critical of Republican proposals. Overall, the article maintains a neutral stance but leans slightly towards a conservative perspective, emphasizing the Republicans’ intent to streamline and reduce government spending.
www.thecentersquare.com – Will Hardy | Conservatives for Clean Energy – Louisiana – (The Center Square – ) 2025-05-15 15:08:00
Louisiana, with its expertise in offshore oil and gas, is well-positioned to lead in offshore wind energy development. This opportunity benefits workers in welding, maritime, engineering, and energy sectors while boosting demand for ports, shipbuilders, and manufacturers. Offshore wind also contributes to energy security by diversifying energy sources, reducing reliance on foreign adversaries, and stabilizing the grid. As energy demand grows, offshore wind is essential to meet needs. With strong policy support, Louisiana can become a major hub for wind energy, continuing its legacy as an energy powerhouse. Will Hardy is the state director for Conservatives for Clean Energy – Louisiana.
Louisiana has long been a leader in American energy production, with decades of experience in offshore oil and gas. That same knowledge and infrastructure now gives us a strategic advantage in a growing market: Offshore wind.
This is not a partisan issue; it’s a Louisiana opportunity. Offshore wind development means more jobs for welders, mariners, engineers, and energy workers who already know how to build and maintain offshore structures. It means more demand for our ports, shipbuilders and manufacturing base.
Just as important, offshore wind contributes to energy security. It diversifies our energy portfolio, reduces our reliance on foreign adversaries, and helps stabilize the grid, all priorities for conservatives and policymakers focused on national defense.
And as power demand continues to grow at a rapid pace, American offshore wind energy must be a key player in meeting that demand. Louisiana’s legacy as an energy powerhouse can continue through innovation and leadership in offshore wind.
With smart policy and support from both state and federal lawmakers, we can build on what we do best: Powering America. Let’s urge our leaders to embrace this all-of-the-above energy strategy and make Louisiana the Gulf’s wind energy hub.
Will Hardy is the state director for Conservatives for Clean Energy – Louisiana.
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Right
The article presents a clear ideological stance aligned with center-right principles, particularly by framing offshore wind energy as consistent with conservative values such as energy security, national defense, and economic growth. The tone and language emphasize job creation, energy independence, and diversification in a way that appeals to conservative priorities. Additionally, the author’s affiliation with “Conservatives for Clean Energy” signals a deliberate promotion of an environmental issue through a conservative lens. While it avoids more progressive environmental rhetoric, it still advocates a proactive energy strategy, placing it within a center-right framework rather than a neutral or strictly factual report on the topic.
SUMMARY: Apple’s $95 million settlement addresses allegations that Siri secretly recorded private conversations on devices like iPhones and MacBooks between September 17, 2014, and December 31, 2024. The lawsuit claims Siri shared confidential talks with third-party businesses, leading to targeted ads. Eligible users who experienced unintended Siri activations during private moments can file claims online, by mail, or phone, with payouts capped at $20 per device and a $100 maximum per person. Additionally, a veterans job fair is happening today, May 15, at the Ario Center, providing support for transitioning military personnel and veterans, with free registration available online.
If you own an Apple product that is siri-enabled, you could be eligible for a payout.
SUMMARY: Denka Performance Elastomer LLC in St. John the Baptist Parish, Louisiana, has suspended operations following a significant financial loss of over \$100 million in the recent fiscal year. The plant, located in “Cancer Alley,” has long faced controversy over its chloroprene emissions, which contributed to the closure of Fifth Ward Elementary School. The suspension is attributed to rising pollution control costs, declining production, and operational disruptions, including unscheduled outages and severe weather. Environmental group Rise St. James views this as a victory but stresses the need for full remediation and support for workers transitioning to safer industries.
