Republicans are fighting back against Biden’s reckless student loan agenda with a bold new reform plan aimed at saving taxpayers $330 billion. The GOP proposal would eliminate Biden’s controversial SAVE program and force colleges to have “skin in the game” when students can’t repay their loans.
Putting Colleges on the Hook for Student Loan Failures
Republicans are taking aim at what they see as the real culprits behind the student loan crisis: colleges and universities that charge exorbitant tuition with little accountability. The sweeping GOP plan would force institutions to reimburse the government for a percentage of unpaid loans based on program costs and student outcomes.
Higher education institutions have enjoyed decades of tuition increases while facing virtually no consequences when their graduates cannot find jobs or repay their loans. Rep. Tim Walberg, a leading Republican on education policy, emphasized that the current system is “effectively broken and littered with incentives that push tuition prices upward.”
Slashing Biden’s “Free Money” Approach to Student Loans
The GOP proposal takes direct aim at the Biden administration’s SAVE plan, which critics call a backdoor attempt at student loan forgiveness. Under the Republican alternative, borrowers would face stricter repayment terms and clearer limits on how much they can borrow.
New borrowing caps would limit undergraduates to $50,000 in loans, graduate students to $100,000, and professional program students to $150,000. The plan also eliminates Graduate PLUS loans entirely and caps Parent PLUS loans at $50,000, forcing families to make more realistic decisions about college affordability.
Funding Tax Cuts Through Education Reform
The $330 billion in projected savings would help offset the cost of extending President Trump’s signature tax cuts. Republicans argue this approach kills two birds with one stone: reforming a broken student loan system while supporting broader economic growth through tax policy.
“If there is any consensus when it comes to student loans, it’s that the current system is effectively broken and littered with incentives that push tuition prices upward. Schools have no reason to lower costs or ensure degrees align with employer needs, all while students and taxpayers pay the price.” – Rep. Tim Walberg
The proposal also tightens eligibility for Pell Grants by increasing the definition of full-time attendance to 30 credit hours per year. This change would ensure that federal aid goes to serious students committed to completing their education in a timely manner.
Democrats have predictably attacked the plan, with Rep. Bobby Scott claiming it would “increase costs for colleges and students” while funding “tax cuts for the wealthy.” The Biden administration has defended its SAVE plan as “the most affordable student loan plan ever,” despite projections that it could cost taxpayers hundreds of billions of dollars in forgiven loans.
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Republicans plan to overhaul the federal student loan system. Here’s what to know
Republican lawmakers want to overhaul student loans. Here’s what to know. – CBS News