Republicans Advance Student Loan Overhaul With Fewer Repayment Options—Here’s What We Know

Forbes

Republicans with the Education and Workforce Committee voted to advance an education reform measure Tuesday, potentially sending to the GOP-controlled House a proposal that looks to eliminate some student loan repayment plans, place limits on how much federal money students can borrow and make eligibility changes for Pell Grants.  Read the full story on Forbes: https://www.forbes.com/sites/antoniopequenoiv/2025/04/29/republicans-advance-student-loan-overhaul-with-new-pell-grant-rules-fewer-repayment-options-heres-what-to-know/  Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00Republicans just advanced new rules that may give you less student loan repayment options.

00:05Here's what you need to know.

00:06Republicans with the Education and Workforce Committee voted to advance an education reform measure

00:11that looks to eliminate some student loan repayment plans,

00:15place limits on how much federal money students can borrow,

00:19and make eligibility changes for Pell Grants.

00:22Pell Grants, which provide financial aid to lower-income students,

00:25and were awarded to 31.6% of undergraduate students in 2022 and 2023,

00:32will become less accessible.

00:34The plan looks to change full-time student Pell eligibility

00:37from 12 semester hours each academic year to 30 semester hours.

00:43New borrowing limits on federal loans will also be implemented under the plan,

00:47which would introduce a $50,000 limit for undergraduate students,

00:51a $100,000 limit for graduate students,

00:54and a $150,000 limit for students seeking professional degrees such as doctorates.

01:01The plan would also limit student loan repayment plans to just two options.

01:05That's down from the seven that borrowers currently have.

01:09Read more about the legislation at Forbes.com.

Category

Transcript

Comments

Recommended