Dive Brief:
- Republicans in Congress have agreed on a spending plan for 2016 that would limit Pell Grants and cut student loan subsidies.
- The Chronicle of Higher Education reports the plan would cut the maximum Pell Grant amount by almost 16% and return the program’s status to discretionary, meaning no budget amount would be guaranteed in future talks.
- The plan would also end interest subsidies on Stafford loans, reduce the reach of income-based repayment options, and eliminate loan forgiveness for public sector workers, according to the article.
Dive Insight:
The Congressional Republican budget plan would make college more expensive for students at a time when the national student debt load is increasingly being seen as a crisis. Under the plan, students who receive federal student loans would find them harder to pay off. Low-income students who qualify for Pell Grants would find less of their tuition subsidized. This proposal comes on the heels of greater discussion on the Democratic side about debt-free college and free community college. Congress, of course, is currently controlled by Republicans.