Senate bill targets 2025 cuts to federal student aid

What does this do?

This bill would undo changes made by a 2025 budget law to federal student aid, bringing back earlier rules for borrowing limits, repayment plans, deferment, Public Service Loan Forgiveness, and Pell Grant eligibility. It would also restore two borrower protections that were delayed — one letting students cancel loans if their school misled them, and one allowing automatic loan discharge if their school closed. The bill also applies an existing rule more broadly, requiring that educational programs across certificate, associate's, bachelor's, and graduate levels show their graduates earn enough to repay their loans, and it sets the endowment tax on wealthy private universities at a flat 1.4 percent rate.

Who does it affect?

Current and future college students who rely on federal financial assistance would be affected, including those seeking loan forgiveness through public service work. Graduates of educational programs and wealthy private universities would also be affected by parts of this bill.

Why does it matter?

If passed, students would have access to the same borrowing limits, repayment options, and grant rules that existed before the 2025 changes. Educational programs that do not meet the earnings standard could lose access to federal financial aid for their students.

Where does it stand?