4 Ways Trump's ‘Big, Beautiful Bill' Will Make College More Expensive
Among its most controversial changes are deep cuts to Pell Grants, the elimination of subsidized student loans, and the introduction of lifetime borrowing caps for both students and parents — primary pathways that make college more affordable for individuals and families.
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While the changes are designed to reduce federal spending, here are four ways Trump's 'Big Beautiful Bill' will make college more expensive.
The bill proposes slashing the maximum Pell Grant award by nearly 23%, dropping it from $7,395 to $5,710 starting in the 2026 to 2027 school year. That's nearly $1,700 less per year that low-income students can use to cover tuition, fees and living costs, leaving families to either borrow more or pay out of pocket.
It also makes Pell Grants harder to qualify for. The required course load would jump from 24 to 30 credits per year, meaning students would have to take 15 credit hours per semester to receive the full award. Students enrolled less than half-time would lose access altogether.
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Experts said these changes could disproportionately affect part-time students, working students and community college students, who often balance jobs and caregiving responsibilities with school.
'Increasing the credit hour requirement from 12 to 15 for Pell Grant eligibility will affect 25% or more of students at community colleges and technical schools,' said Tom O'Hare, a college planning coach at Get College Going.
'Extending the credit hours will lower access to financing resources, resulting in an extended timeline to complete their programs, a double financial hit for a family or individual.'
The bill would impose lifetime borrowing caps on federal student loans: $50,000 for undergraduate students, $100,000 for graduate students and up to $150,000 for professional students, such as those in law or medical school.
These caps mean that students who reach the limit before completing their degrees will be forced to turn to private loans, which often come with higher interest rates, fewer repayment protections and less flexibility than federal loans.
The House and Senate versions differ slightly. The House would cap graduate borrowing at $100,000 total (or $150,000 for professional degrees). At the same time, the Senate allows a higher cap of $200,000 for professional programs but maintains the current undergraduate caps ($31,000 for dependent students and $57,500 for independent students).
'Families would need to look outside direct loan options, which could mean more borrowing in the private market,' said Jonathan Sparling, a director at CollegeWell, an educational platform that helps families plan and save for college.
According to the U.S. Department of Education, 'private student loans can have variable or fixed interest rates, which may be higher or lower than the rates on federal loans depending on your circumstances.'
The bill proposes eliminating subsidized federal loans for undergraduates, a key benefit that currently keeps borrowing costs lower.
Right now, subsidized loans don't accrue interest while a student is in school, during grace periods, or in deferment, effectively saving borrowers hundreds or even thousands of dollars.
'In practical terms, the elimination of the interest subsidy would mean immediate accrual of interest after loan disbursement, adding to total costs,' Sparling said.
This would directly increase the total amount students owe over the life of the loan. In addition, without this subsidy, students would leave school owing more than they do now before even making their first payment.
The legislation would scrap current repayment options and replace them with just two: A standard fixed-payment plan and a new income-driven plan called the Repayment Assistance Plan (RAP).
Under RAP, borrowers would pay 1% to 10% of their income, with a minimum monthly payment of $10. While this may lower monthly payments for some, it extends the repayment timeline: Loan forgiveness wouldn't kick in until after 30 years of payments, compared to 20 or 25 years under many current plans.
Dan Rubin, CEO of Yelo Funding, said eliminating some income-driven repayment plans like SAVE (Saving on a Valuable Education) and PAYE (Pay As You Earn) have allowed millions of borrowers to manage their loan repayments.
'Ending those options would remove the only federal safeguard that adjusts repayment to earnings,' Rubin said. 'Faced with the prospect of higher debt and fewer repayment protections, many students will be forced to delay, forgo or abandon their graduate studies altogether.'
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This article originally appeared on GOBankingRates.com: 4 Ways Trump's 'Big, Beautiful Bill' Will Make College More Expensive
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