Impact of proposed reconciliation bill on student loans and college affordability

AFT President Randi Weingarten released a statement regarding a reconciliation bill in the House Education and Workforce Committee. The proposed legislation aims to reduce Pell grants, which could have significant economic implications and increase student debt.

“This bill takes a hatchet to American opportunity by slashing $330 billion in college affordability to pay for tax cuts for billionaires. Most of us agree that we should be giving more opportunities to students, not ripping them away. This cruel and callous plan would increase individual costs for borrowers, while removing guardrails against predatory colleges hawking worthless degrees," said Weingarten.

Highlighting the importance of accessible higher education, Weingarten emphasized, “Access to affordable, high-quality higher education has been crucial in paving pathways to the middle class. Everyone has the right to pursue their dreams without being burdened by a lifelong debt sentence, and federal funding is meant to protect these pathways, regardless of someone’s ability to pay upfront.”

Weingarten described the bill as a collection of detrimental measures that would make college unaffordable for first-generation students and those economically disadvantaged, aiming instead to benefit the wealthy. She further noted, “fresh analysis released today by the Student Borrower Protection Center shows this bill will damage the U.S. economy to the tune of $40 billion a year by throttling demand for goods and services.”

The AFT President asserted the issue is not about whether individuals should repay their student loans but rather about preserving opportunities for advancement. “This is not about people paying their student loans; they should, and we have sued the loan servicers repeatedly for turning the payment system into a minefield that few can navigate. This is about taking away people’s opportunity to get ahead.”

Weingarten concluded with a call to protect the financial interests of middle-class and working-class Americans, stating, “Let’s do more for all our kids—students who are going to college and young people who don’t go to college. Don’t try to balance the budget on the backs of middle-class, working-class and poor Americans who are only trying to help themselves and their families have a shot at a better life.”

The bill’s passage could potentially leave millions of students without adequate financial aid, affect Pell grant access, increase surplus fees, triple monthly loan payments for some borrowers, eliminate Graduate PLUS loans, and remove protections against predatory career programs.