Paying for college is already overwhelming for many low income families — and now, it could get even harder. House Republicans have introduced the Student Success and Taxpayer Savings Plan, a sweeping proposal that would make major changes to federal student loans and financial aid programs.
For students who rely on Pell Grants, affordable loans, and flexible repayment options, these proposed changes could limit access to higher education and increase financial hardship. It’s more important than ever for families to be aware of their options — including opportunities like colleges that offer free tuition for low income families.
New Borrowing Limits
One of the most significant changes involves how much students can borrow from the federal government. These new limits could force many students to rely on private loans, which often come with fewer protections.
- Undergraduate federal student loans would be capped at $50,000 total.
- Graduate students would be limited to $100,000.
- Graduate PLUS loans, which currently allow students to borrow the full cost of attendance, would be eliminated.
Payment Plans Restructured
Right now, federal student loans offer several repayment plans — including some that keep payments affordable for low income borrowers. This proposal would reduce those options, increasing monthly costs for many.
- Borrowers would only have two repayment choices: a standard 10-year plan or one income-driven repayment (IDR) plan.
- The new IDR plan would require a minimum $10 monthly payment, even for borrowers with very low incomes — ending the current $0 payment option.
- Loan forgiveness would only be available after 30 years of repayment, instead of 20 or 25.
Stricter Pell Grant Rules
Millions of low income students rely on Pell Grants to afford college. The proposed changes would make it harder to qualify — especially for part-time students and those juggling work or family responsibilities.
- Students would need to take at least 15 credit hours per semester to receive the full Pell Grant.
- Those taking fewer than six credit hours would no longer qualify for any Pell Grant.
- Students from families with high assets but low reported income could be disqualified based on a revised financial aid formula.
New Penalties & Looser Regulations for Schools
The plan includes policies designed to hold colleges accountable for student debt — but also removes some rules that protect students from risky programs, especially at for-profit schools.
- Colleges could be fined if too many of their former students have high debt compared to their income.
- The “gainful employment” rule, which cuts off aid to low-value programs, would be repealed.
- The 90/10 rule, which limits how much federal aid for-profit colleges can receive, would also be eliminated.
Why This Matters
These proposals could make it harder for low income students to afford college and stay enrolled, especially those who attend part time or care for families. Meanwhile, cutting federal protections may increase the risks for borrowers who have to rely on loans to complete their education.
While the goal of the legislation is to reduce costs and save money, many advocates worry that it would make college less accessible for the very students who need help the most.
Relief Recap
This bill still needs to pass through Congress, and it could change before becoming law. We’ll keep an eye on developments and share updates so you can stay informed and prepared.
In the meantime, if you’re concerned about rising college costs, know that there are still affordable options. Check out our complete list of colleges that offer free tuition for low income families to find schools that offer real financial relief.
