Trump agenda bill overhauls Biden student loan ‘scheme’: Top Republican
Senate Health, Education, Labor, and Pensions (HELP) Committee Chairman Bill Cassidy, a Republican from Louisiana, recently claimed victory against former President Joe Biden’s student loan plans as part of President Donald Trump’s comprehensive agenda bill. The bill aims to crack down on Biden’s student loan forgiveness schemes and prevent the burden from being shifted onto taxpayers.
Cassidy highlighted that the Biden administration was attempting to forgive student loans for individuals who willingly took on the debt, including those who never attended college and would never earn the same income as the loan recipients. The bill released by Cassidy’s committee seeks to end this transfer of student loan debt onto taxpayers, resulting in significant savings for the government.
The legislation specifically addresses Biden’s Borrower Defense to Repayment regulations and Closed School Discharge regulations, which Republicans argue are costly policies that burden federal student loan borrowers. The bill also eliminates federal Grad PLUS loans and imposes limits on annual unsubsidized loans for graduate and professional degrees, aiming to prevent individuals from borrowing more money than they can realistically pay back.
Moreover, the bill includes provisions to prevent federal funding from supporting degrees from underperforming universities and establishes a Workforce Pell Grant to encourage individuals to pursue non-collegiate degrees. The legislation also considers foreign income when evaluating Pell Grants and excludes farm and small business assets from the assessment.
Cassidy emphasized that these measures would result in approximately $300 billion in taxpayer savings. Senate Republicans are currently working on their version of Trump’s agenda bill, which aims to advance policies on taxes, immigration, energy, defense, and the national debt. The reconciliation process allows Republicans to pass the bill with a simple majority in the Senate, bypassing Democratic opposition.
While the House has already passed its version of the bill, Senate Republicans are working to ensure both chambers agree on identical versions before sending it to Trump’s desk for signature. Cassidy expressed optimism about the House’s reception of the bill, noting that it fully funds the Pell Grant program and addresses the needs of low-income students seeking career education opportunities.
Although there was a goal to have the bill on Trump’s desk by the Fourth of July, Cassidy suggested that lawmakers should prioritize getting the legislation right, even if it means extending the timeline or cutting short the summer recess. Ultimately, the focus is on passing a bill that benefits both society and students in need of financial assistance for education and career development.
