Republicans propose massive overhaul of student loans, Pell Grants

A new GOP bill would slash student loan programs, change Pell Grant eligibility and loosen regulations on for-profit colleges. That is, if it survives Congress's budget rules.

Republicans in Congress are moving forward with a massive plan to overhaul how Americans pay for college. And they're hoping to make an end-run around Senate Democrats to do it.

On Monday, a GOP-led committee in the U.S. House of Representatives unveiled a sprawling, 100-page budget bill that would reshape much of the college financial aid system. If enacted, the legislation would touch the lives of millions of students and the colleges they attend.

It would reduce undergraduate students' eligibility for traditional Pell Grants and penalize some universities for saddling students with crushing debt. Costs for certain college programs would be capped. At the same time, regulations on for-profit colleges would loosen.

It would also give student loan borrowers less flexibility in their monthly bills – which for many would go up.

https://www.usatoday.com/story/news/education/2025/04/28/republicans-propose-student-loan-changes/83329029007/