The latest reconciliation bill set for review in the House Committee on Education and the Workforce proposes some of the most extensive changes to higher education funding and student loans in decades. This is the papered proposal, it's NOT law yet.
If enacted, the legislation would limit federal borrowing, end Parent PLUS loans, change repayment options, and reshape Pell Grant eligibility. The changes would primarily affect new borrowers taking out loans after July 1, 2026, but some changes take effect as so as the bill is signed into law.
It's important to remember that this is the first work-up of proposals that are actually in print. Not all of these may make the final bill, and even then, they may change as well. That being said, many of these proposals mimic what was already proposed under the College Cost Reduction Act, and many are popular topics for Republicans.
Let's break down some of the major proposals (though there are many others as well - the bill is 100+ pages long).