In a 218-214 vote today, Congress passed the “One Big Beautiful Bill Act,” a 940-page budget reconciliation package that bundles tax breaks, spending cuts—including Medicaid, SNAP, and green energy—and a $5 trillion debt-ceiling increase along with a sweeping overhaul of the federal student aid system.
The bill makes major changes to student financial aid, including simplifying loan repayment by replacing existing plans with just two options: a fixed plan and a stricter income-driven plan with longer terms, higher minimum payments, and limited forgiveness. It places new borrowing caps on Parent PLUS and Grad PLUS loans. The bill also ties access to federal aid to the earnings outcomes of college programs, increasing accountability for institutions, and expands Pell Grant eligibility to students in short-term workforce training programs at accredited institutions.
LMU continues to evaluate the final terms of the bill as well as contingency options to support students whose eligibility for grants or loans has changed.