Proposed federal budget would limit access to student loans
Students take photos in their caps and gowns at Columbia University in New York City on April 26, 2024. File Photo by John Angelillo/UPI | License Photo
June 28 (UPI) -- The latest version of the Senate's federal budget reconciliation bill would limit the availability of student loans for future borrowers by revising federal student loan programs and regulations.
The budget bill that already has passed the House of Representatives and the Senate version would place a maximum amount on how much people could borrow through the federal Parent PLUS and graduate student loans to help them pay for their college educations.
The House-approved version would limit undergraduate borrowing to $50,000, while the Senate version would limit that amount to $65,000.
Graduate students would see limits of $100,000 for most master's programs, while the borrowing limit for professional degrees would be $150,000 in the House version and $200,000 in the Senate bill.
Supporters of the proposed limits say they could save taxpayers more than $300 billion and make it harder for college and university administrators to raise tuition costs and fees.
Opponents say it would make it harder for disadvantaged students to attend college.
"It's abundantly clear that the budget reconciliation package would reduce access to higher education and healthcare and jeopardize [the University of California's] ability to carry out its public service mission," Chris Harrington, U.C. associate vice president for Federal Governmental Relations, said on Monday in a letter to the state's House delegation in May.
The House-approved bill would eliminate Pell Grants for part-time students, subsidized loans for undergrads and Graduate PLUS loans for graduate and professional students, according to the University of California.
It also would limit eligibility for Supplemental Nutrition Assistance Program and Medicaid benefits for low-income students.
The Senate's version of the proposed fiscal year 2026 budget reconciliation bill numbers 940 pages and might be voted on as soon as Saturday night.
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