The GOP-led committee in the U.S. House of Representatives has unveiled a comprehensive budget bill titled the 'Student Success and Taxpayer Savings Plan,' which aims to significantly overhaul the student loan and Pell Grant systems.

Additionally, the bill would eliminate unemployment and economic hardship deferments for loans taken out after July 2025, limiting options for borrowers facing financial difficulties.

The plan reflects the GOP's strategy to support President Trump's tax cuts by limiting student borrowing and reducing repayment options.

To pass the bill, Republicans are attempting to use a reconciliation process to bypass the 60-vote threshold in the Senate, although they face challenges regarding the bill's scope.

The Pell Grant program, which provides vital financial aid to over 6 million undergraduates, would also expand support for short-term workforce training programs under the new legislation.

Under the new plan, undergraduate borrowing would be capped at $50,000, while graduate students would face a cap of $100,000 starting July 1, 2026, potentially increasing reliance on private loans.

The bill, spanning 103 pages, aims to simplify federal education lending while also curbing access to Pell Grants, which are crucial for many low-income students.

Consumer advocates warn that these proposed measures could worsen the affordability crisis for families trying to pay for college, ultimately restricting access to education.

This proposed legislation seeks to reshape how Americans afford college by reducing federal involvement in education financing and introducing new borrowing limits.

Key changes include raising the aggregate borrowing limit for dependent undergraduates from $31,000 to $50,000 and introducing annual borrowing limits based on median program costs.

Rep. Tim Walberg, chair of the Education and Workforce Committee, claims the bill could save hundreds of billions of dollars and facilitate broader tax cuts.

Overall, the proposed legislation is poised to impact millions of students and colleges, raising significant concerns about affordability and access to higher education.