Bill would double Pell Grants and cut student loan costs
In committeeH.R. 4862Latest action
Sponsor: Robert C. "Bobby" Scott · Representative · VA
AIDecoded by AI · checked against the recordRead the official text
Official title: LOAN Act
119th Congress
Topics: Education
Introduced:
Read the official bill on Congress.govIn plain words
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HR 4862 would roughly double the maximum Pell Grant and cut student loan costs for millions of current and future borrowers.
50-second read · 4 questions answered below
What does this do?
This bill would roughly double the maximum Pell Grant to $10,000 starting in 2026–2027, rising to $14,000 by 2031–2032 and adjusting for inflation after that. It would also eliminate loan origination fees, end interest capitalization, lower interest rates on new loans starting July 1, 2026, and create two simplified repayment options. In addition, it would expand Pell Grant eligibility and make the Public Service Loan Forgiveness program easier to use.
Who does it affect?
Current and future college and graduate students, as well as people who already have federal student loans, would be affected. Expanded Pell Grant eligibility would also reach certain graduate students, Dreamer students, and people who receive means-tested government benefits.
Why does it matter?
Borrowers who take out new loans after July 1, 2026 would face different fee and interest structures than borrowers do today. People who work in qualifying public service jobs could find it easier to have remaining loan balances canceled under the expanded forgiveness program.
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Where does it stand?
- IntroducedAug 1, 2025
- House committeeYou are here · Aug 1, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.