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Republican Budget Bill Reforms Student Loan Repayment Options, Pell Grants

  • Republicans introduced the One Big Beautiful Bill Act on student aid reforms, proposing changes expected as early as July 2025 if passed by the Senate.
  • The bill aims to reduce federal spending by nearly $350 billion and requires students to be full-time with at least 15 credits to qualify for Pell Grants.
  • Wisconsin leaders warn thousands of part-time students could lose Pell Grant eligibility or see reduced aid, affecting over 70,000 Pell recipients statewide.
  • The legislation limits student loan repayment plans to standard or income-driven repayment capped at 10% of income, while eliminating subsidized loans and the 2023 SAVE program.
  • Opponents argue the reforms narrow access for low-income students and harm affordability, while supporters claim the bill enforces accountability with schools 'having skin in the game.
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Republican budget bill reforms student loan repayment options, Pell Grants

(The Center Square) – College students receiving federal aid and higher education institutions are set to face major changes to loan borrowing and repayments as early as July 2025, if President Donald Trump’s “big, beautiful bill” passes the Senate.

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The Washington Post broke the news in on Monday, May 26, 2025.
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