An Opportunity for Grassroots Engagement
As you know, Congress is currently considering H.R. 1, “The One, Big, Beautiful Bill Act” (OBBBA). This legislation has passed the U.S. House of Representatives and is currently being considered by the U.S. Senate. There has been a great deal of media attention and public concern around cuts to key safety net programs, but less attention to the impact this legislation, if passed, will have on individuals pursuing post-secondary education. Cumulatively, these changes will increase financial burdens on students and, for some, put college totally out of reach.
This House-passed version adopted the recommendations of the House Education Workforce Committee, taking $350 billion from student financial aid programs. The U.S. Senate’s Health, Education, Labor and Pensions (HELP) Committee has produced a proposal that cuts approximately $300 billion from student aid, and those changes will be considered by the full Senate likely before July 4th.
Specifically, the education provisions included in H.R. 1 by the House Education Workforce Committee (passed by the U.S. House of Representatives) include:
- Federal Pell Grants: Changes in the rules will make it harder for undergraduate students to qualify for Pell Grants. Students who attend less than half-time (working students, part-time students) will not be eligible for Pell Grants; the requirement for full-time credits will increase from 12 to 15 hours; and Pell Grant awards for credits below 15 hours will be cut.
- Eliminates subsidized loans for undergraduate students, which means students will lose a valuable benefit and accrue interest on their student loans while in school. It makes borrowing more costly and students will graduate with higher student loan debt.
- The bill eliminates the Grad PLUS program, which ensures that graduate students can access student financial aid with lower interest rates and more favorable student loan repayment options. The elimination of Grad PLUS will have a disparate impact on graduate students enrolled in certain health professions such as medical and health science degree programs. Our nation is facing critical shortages in these areas, and states require graduates to have these degrees for licensure and practice. Grad PLUS is available to students for tuition and living costs (transportation, housing and food, for example), providing critical support for those whose programs of studies make outside work challenging. Some students will be forced to borrow in the private market, but others either will not qualify to borrow in the private market, will face much more expensive loan terms, or will not pursue graduate education, putting these important careers out of their reach.
- Restricts the Parent PLUS loan program, limiting the number of families who can use such loans and increasing the overall financial burden on low-income families or putting college out of reach for them.
The Senate proposal is somewhat better for students but also eliminates the Grad PLUS program, places caps on graduate student borrowing and makes other changes to Pell eligibility that would limit access for students receiving other federal and non-federal grant aid.
Cutting federal student aid will make college less accessible and less affordable for individuals in every state and every urban and rural Congressional District. It will limit access to career pathways for first-generation students, students with economic need and middle-class students.
While AJCU presidents and staff continue to engage in direct advocacy, you can engage too. Members of Congress in both parties need to hear directly from those who will be impacted by these cuts: current students, future students, adult learners seeking new opportunities, parents, educators and staff that teach and support students, community organizations such as hospitals and clinics that depend on a prepared workforce, and local businesses around your campuses that depend on students as well as the college/university community, and others!
Please take a moment to visit the Student Aid Alliance’s Contact Congress page. This site allows you to easily send a message to your Senators and your Representative, and ask them to stop these harmful cuts to education that will hinder our nation’s economic growth and competitiveness.
This is an opportunity to lift up your voice in support of educational opportunity. Please take a moment to engage and tell Congress not to slash funding for students. Thank you for helping ensure that a Jesuit education remains accessible and affordable.
By Jenny Smulson, Vice President of Government Relations, AJCU