Biden-Era Student Loan Program Overhaul Passes House Committee

A House panel led by Republicans endorsed a measure on April 29 that limits federally backed student loans, safeguards taxpayers from debt forgiveness bailouts, and revises Pell grant eligibility.

The Student Success and Taxpayer Savings Plan Bill, which passed the House Committee on Education and the Workforce with a 21–14 partisan vote, is part of a broader reconciliation effort designed to circumvent the Senate’s 60-vote filibuster requirement to propel President Donald Trump’s policy initiatives.

The legislation, discussed on Tuesday, rolls back former President Joe Biden’s student loan program, which lacked limits on loan amounts and aimed to forgive over $1 trillion in student debts without congressional approval, according to committee Republicans.

Chairman Tim Walberg (R-Mich.) stated this initiative will save taxpayers $330 billion. The loans will be capped based on the median cost of college programs, motivating institutions to lower expenses to stay competitive instead of continuously raising tuition and fees in line with soaring government grant and loan figures.

“It’s well-known that spending in Washington has been disastrous,” said Walberg. “Injecting more funds into a failing system won’t fix it.

“This is an egregious way to exploit borrowers for political gain.”

During the markup session, Democrats offered numerous amendments to the bill, which included provisions to ensure that borrowing students would not lose access to food and medical entitlement programs, to prevent the government from garnishing wages on defaulted loans, and to consider on-the-job training periods for physicians and teachers as eligible service years for the Public Service Loan Forgiveness program.

All of these amendments were rejected.

Democrats voiced concerns that loan limits would diminish academic options for students, potentially leading to the elimination of various college majors nationwide and fewer Americans pursuing higher education. They also argued that such cuts would drive many students towards high-interest private loans from predatory lenders.

“This bill transforms financial aid from a bridge into a barrier,” stated Rep. Alma Adams (D-N.C.).

The bill additionally modifies the Pell grant program, which currently offers up to $7,295 annually to full-time, low-income students. Walberg noted that Pell is projected to face a shortfall of $70 billion to $100 billion within the next decade. He proposes raising the full-time academic requirement from 12 credits per semester to 30 credits per year, while also broadening it to cover short-term vocational training.

Opponents contend that the increased credit requirement is unjust for nontraditional students who may be juggling full-time jobs or family responsibilities.

“It complicates college access for everyday Americans,” lamented Rep. Bobby Scott (D-Va.), the ranking member of the committee.