TL;DR: A major bill just passed that could make college harder to afford and access. If you’re a student, parent, or thinking about higher education, this affects YOU. beautiful bill student loans
The Big Picture
Congress just passed a bill that completely changes how college funding works. Education leaders are calling it a “make college less affordable” disaster, but Republicans say it’s about holding schools accountable. Here’s what’s actually happening:
STUDENT LOANS: Getting Harder to Get Money
What’s changing:
- Graduate students can’t borrow more than $100K for master’s degrees
- Doctoral/medical students capped at $200K
- Grad PLUS loans are being phased out
Why this matters: Medical school alone costs an average of $240K. So if you’re dreaming of becoming a doctor, lawyer, or getting an advanced degree, you might be out of luck unless you’re already wealthy.
The catch: You’ll be forced into private loans that don’t qualify for forgiveness programs. Private loans = higher interest rates + fewer protections.
YOUR MAJOR COULD DETERMINE YOUR LOAN ELIGIBILITY
New rule: If graduates from your program don’t make enough money, that program loses federal aid eligibility.
What this means:
- Want to be a social worker? Teacher? Artist? Your program might lose funding
- Schools will likely cut programs that don’t lead to high-paying jobs
- Say goodbye to liberal arts, social work, and other “lower-paying” but essential careers
Reality check: Not everyone goes to college to get rich. Some people want to help others, create art, or serve their communities. This bill basically says “tough luck.”
WEALTHY SCHOOLS GET HIT WITH MASSIVE TAX HIKES
What’s happening:
- Schools like Harvard (with $53B endowment) face new 8% tax on investment income
- Only affects super-wealthy schools with $2M+ per student in endowments
- Smaller schools (under 3,000 students) are exempt
The irony: These endowments fund financial aid for low-income students. Tax the endowments = less money for scholarships. So this might actually hurt the students it’s supposed to help.
ONE BRIGHT SPOT: Trade School Gets Federal Aid
Good news: Pell Grants can now be used for short-term job training programs like:
- Cloud computing certifications
- Forklift operator training
- Other skilled trades
Why this matters: Finally recognizes that not everyone needs a 4-year degree, and skilled trades are valuable careers.
MEDICAID CUTS = HARDER FOR LOW-INCOME STUDENTS
The bill also cuts Medicaid and adds work requirements, making it even harder for low-income students to balance work, school, and family responsibilities.
WHAT REPUBLICANS SAY VS. WHAT CRITICS SAY
Republicans argue:
- “Schools have failed to police themselves”
- “Unlimited borrowing makes schools charge more”
- “We’re breaking the cycle of debt”
Critics respond:
- “This makes college less accessible to working families”
- “We’ll have fewer doctors, teachers, and social workers”
- “Rich families will be fine, everyone else gets screwed”
BOTTOM LINE: WHAT THIS MEANS FOR YOU
If you’re planning for college:
- Consider the earning potential of your major (seriously)
- Look into trade programs that now qualify for Pell Grants
- Start saving more because borrowing will be harder
If you’re a parent:
- College just got more expensive for middle and lower-income families
- Your kid might need to choose their major based on money, not passion
- Private loans might be your only option for graduate school
If you’re already in college:
- These changes might not affect current students immediately
- But your younger siblings or future kids will face these restrictions
THE BIGGER PICTURE
This isn’t just about money – it’s about what kind of society we want. Do we want:
- Only rich families accessing higher education?
- Fewer teachers, social workers, and artists?
- College decisions based purely on earning potential?
The government will save $300B over 10 years from these changes. But at what cost to opportunity and social mobility?
What do you think? Are these changes necessary accountability measures or barriers to opportunity? Drop your thoughts below.
#HigherEducation #StudentLoans #CollegeCosts #Education #StudentDebt #CollegeAccessibility
