Senate Republicans have proposed a 71-page bill that would overhaul student loans and financial aid, bringing Congress closer to major college financing reform. The bill, part of President Trump’s broader spending plan, introduces borrowing caps, eliminates most repayment plans (including Biden’s SAVE plan), and limits graduate and parent loans.
Unlike the more aggressive House version, the Senate bill retains subsidized loans and takes a softer approach to Pell Grants. However, critics warn changes may still reduce college affordability and drive students to risky private loans.
The bill also introduces new accountability rules, cutting aid to college programs that don’t lead to higher earnings—but these may not survive the budget reconciliation process.
