With House Republicans rolling out sweeping changes to federal student aid, many families are wondering what college affordability might look like after the 2024 election. The proposed College Cost Reduction Act represents the most ambitious overhaul of student financial aid in decades, touching everything from loan eligibility to repayment options.
I’ve spent the past week analyzing the 277-page bill and speaking with education policy experts across the political spectrum. What’s clear is that this legislation would fundamentally reshape how Americans pay for higher education.
“This proposal represents a dramatic shift in federal student aid philosophy,” Dr. Robert Kelchen, head of the Department of Educational Leadership at the University of Tennessee, told me during a phone interview yesterday. “It’s moving from broad access to targeted support with more guardrails.”
The legislation, introduced by Rep. Virginia Foxx (R-N.C.), chair of the House Education Committee, aims to curb what Republicans describe as runaway college costs. Among its most significant provisions is capping graduate student borrowing at $100,000 lifetime and undergraduate borrowing at $50,000.
Currently, graduate students can borrow up to the full cost of attendance minus other financial aid, potentially accumulating hundreds of thousands in federal loan debt. Data from the Education Department shows approximately 7% of borrowers owe more than $100,000 in federal student loans.
For families navigating college decisions now, the uncertainty is particularly challenging. Marissa Jenkins, a high school counselor in Columbus, Ohio, shared that parents are increasingly asking how potential policy changes might affect their financial planning.
“I’m telling families to consider scenarios where federal loans might be more limited in the future,” Jenkins explained. “That means more emphasis on choosing affordable options and exploring institutional aid.”
The Republican proposal would also eliminate the PLUS loan program for parents and graduate students, which currently allows borrowing up to the full cost of attendance. Instead, parents could take out a new Parent Undergraduate Loan with stricter annual limits.
While visiting community colleges in Virginia last month, I heard repeatedly from administrators concerned about another provision: eliminating loan forgiveness programs. The bill would sunset the Public Service Loan Forgiveness program and end income-driven repayment plans that offer forgiveness after 20-25 years.
Beth Morrison, financial aid director at Northern Virginia Community College, believes these changes could particularly impact students pursuing careers in public service. “Many of our nursing and education students rely on PSLF as part of their career financial planning,” Morrison noted.
The legislation also proposes consolidating the current federal grants into a single Pell Grant program with modified eligibility requirements. Students would need to take 30 credits annually (up from 24) to receive the maximum award, potentially complicating aid for part-time students who often juggle work and family responsibilities.
According to Education Department data, approximately 42% of community college students attend part-time. These students might find themselves with reduced grant eligibility under the new requirements.
Republicans argue these reforms address legitimate concerns about college affordability. The national student loan portfolio has indeed grown dramatically, from $516 billion in 2007 to approximately $1.6 trillion today, according to Federal Reserve data.
“The current system has fueled tuition inflation while leaving many students with debt they can’t repay,” Rep. Foxx stated when introducing the legislation. “Our approach restores accountability and protects both students and taxpayers.”
Democrats and student advocacy groups have pushed back strongly. Rep. Bobby Scott (D-Va.) characterized the proposal as “making college more expensive for students while providing less accountability for poor-performing institutions.”
During a visit to the Capitol last week, I observed staffers from both parties acknowledging the bill has little chance of passing the Democratic-controlled Senate in its current form. However, with higher education reauthorization long overdue and student debt a major campaign issue, elements of the proposal could shape negotiations after the 2024 election.
