While Trump and Musk feud, student aid burns: Pell Grant, loan subsidies to face brutal cuts in ‘Big Beautiful Bill'

Time of India

2 days ago

While Trump and Musk feud, student aid burns.
As Donald Trump and Elon Musk trade public swipes once again, something far more consequential is smoldering in the background: the future of federal student aid. At the heart of the political wildfire is Trump's so-called
'Big Beautiful Bill'
— a sweeping legislative package designed to slash social safety nets under the banner of
'fiscal responsibility.'
The House passed its version last month, but the Senate's freshly unveiled draft is fanning the flames even further — and for millions of college students, especially those from low-income families, the heat is rising fast. The bill proposes major changes to Pell Grant eligibility and student loan access, threatening to lock thousands out of higher education entirely.
Elon Musk has once again slammed the bill, this time calling it
'utterly insane.'
But while Musk argues it doesn't cut enough, Trump wants it signed and sealed — leaving students, families, and educators caught in the middle of a billionaire showdown.
The bill isn't law yet. But if it passes, the consequences will be real, swift, and painful. Here's what's at stake — while the billionaires argue.
Pell Grants: Fewer students, stricter rules, less aid
If you're relying on a Pell Grant to pay for college, this bill could change everything. According to the nonpartisan Congressional Budget Office, over half of current Pell Grant recipients would see a reduction in aid — and at least 10% could lose their grants altogether.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Reporter Wear Bad Fitting Dress In Public? Look At Photos.
Vetob
Read Now
Undo
Why? Because the bill raises the bar. To get the maximum $7,395 Pell Grant, students would now have to complete 30 credit hours per year instead of 24. Part-time students? You'll need 15 credits instead of 12. And if you're enrolled less than half-time — forget it. You're out.
The idea, on paper, is to push students to progress faster. But real life isn't paper. Many Pell Grant recipients are juggling jobs, caregiving, or both.
Adding more coursework isn't a productivity hack — it's a barrier. The ones most affected are those who can't afford to go full time, and that includes a significant number of community college students. According to the American Association of Community Colleges, about 400,000 Pell recipients could see their aid disappear.
The era of high-interest degrees
Pell Grants aren't the only target. The
Big Beautiful Bill
would also eliminate subsidized federal loans — the kind that don't accrue interest while students are in school.
That means borrowing gets more expensive before you even graduate.
But there's more: the bill adds a lifetime cap on how much students can borrow, pegged to the median cost of their program. Sounds neat in theory — until you realize it doesn't adjust for where you live or what you're studying. Planning to become a doctor or lawyer? Good luck. Professional programs are pricey, and these new limits could make them unreachable for all but the wealthy.
And when federal support dries up, private lenders step in — often with higher interest rates and fewer protections. In short, students will be forced to pay more to learn less, and many might opt out of college entirely.
Low-income families risk losing their only path to college
Pell Grants have long been a lifeline for low-income families. They're not loans, they don't accrue interest, and they don't have to be paid back. For families making under $30,000 a year — which accounts for two-thirds of Pell recipients — these grants are often the difference between attending college and not.
This bill threatens to cut off that path. Critics argue that it would widen the education gap, especially for Black, Latino, and first-generation college students who are statistically more likely to rely on need-based aid. And while the bill's supporters frame it as a push for 'accountability,' what it really does is shift the burden of higher education back onto those who can least afford it.
So, what now?
The Senate hasn't passed the bill yet, and with reconciliation rules in play and public drama between Trump and Musk still unfolding, nothing is final. But the stakes are painfully clear. If the bill becomes law, it won't just be another win or loss in the Trump–Musk power struggle. It'll reshape the financial future of millions of American students — and not in a good way.
So while the billionaires feud on social media, students, parents, and educators are left watching the fallout. Because if this bill passes,
'beautiful'
won't be the word anyone uses to describe what happens next.
Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.