And then they came after the students
making it harder to make more money
While a lot has been written about Trump’s “big, beautiful bill” and its damage to Medicaid, SNAP and a host of other federal programs, it’s also the case that this bill now makes it harder for people to afford college. And that just makes America “stupider”.
Cuts to Student Loan Programs
These are just a few of the changes that hurt the ability of students to go to college, obtain loans and pay those loans in a manner that is financially sustainable.
Phases out a number of existing federal student loan repayment plans and creating only two options.
Impact: The new repayment plans could result in larger monthly payments for some borrowers, particularly those with families, and extend the repayment period, delaying loan forgiveness.
Caps the amount graduate and professional students can borrow and also caps the amount that parents can take out through the Parent PLUS loans.
Impact: The caps don’t take into account the high cost of graduate, law and medical school, making it less likely that those from less wealthy families will be able to pay for such schooling. The caps will also lead students to borrow from riskier, and higher interest, private loans.
Tightens the eligibility for Pell Grants, with students receiving full scholarships no longer eligible for additional Pell Grant funding. It’s important to note that about one-third of all undergraduate students receive Pell Grants.
Impact: “Full scholarships” often don’t pay for all expenses and students will no longer be able to obtain loans to cover the additional costs not covered by the scholarship.
Eliminates the Economic Hardship Deferment, whereby borrowers with new loans will lose access to the economic hardship and unemployment deferment provisions.
Impact: Students will no longer be able to temporarily pause payments due to financial difficulties, including loss of employment.
Over $300 billion in federal support to students over the next ten years.
The Bottom Line
As a result of Trump’s “big, beautiful bill” students will find it harder to afford higher education. It’s a well-known fact that obtaining a college degree still pays for itself, over time, through higher lifetime earnings, including close to $1M more if one obtains a bachelor’s degree vs. a high school degree.
Trump’s not only making it harder to get a better education, he’s also making it harder to earn more money over one’s lifetime.
If you want your child to be poorer, keep supporting Trump and his policies.