Washington, D.C. — Congresswoman Elise Stefanik, a senior member of the House Education and Workforce Committee, released the following statement celebrating the passage of the Student Success and Taxpayer Savings Plan — a historic piece of legislation that saves over $330 billion while advancing President Trump’s agenda to provide tax relief for American families, rein in wasteful spending, and reduce the federal budget deficit.
"Today, I proudly stand with my colleagues to pass the Student Success and Taxpayer Savings Plan — a crucial step toward reforming our postsecondary education system, protecting taxpayers, and ensuring that every dollar spent on higher education delivers value. This bill will bring much-needed accountability to colleges and universities, helping students and taxpayers alike while lowering student debt burdens and ensuring federal funds are spent wisely," said Congresswoman Stefanik.
The legislation, to be included in the One Big Beautiful reconciliation package, focuses on three key initiatives: strengthening accountability for schools and students, streamlining student loan options, and simplifying student loan repayment.
Key Highlights of the Legislation Include:
- Strengthened Accountability: Colleges will now have a financial stake in their students’ success, ensuring that they are held accountable for poor outcomes. Schools that fail to provide financial value to their students will face penalties, including the loss of access to federal student aid.
- Streamlined Student Loan Options: The bill places clear limits on the amount students can borrow, including capping undergraduate loans at $50,000, capping graduate loans at $100,000, and capping professional loans at $150,000. Additionally, Parent PLUS loans are capped at $50,000 and require students to borrow the maximum amount first.
- Simplified Student Loan Repayment: The legislation consolidates complex repayment plans into two options: a fixed repayment plan and an income-driven repayment (IDR) plan. The new IDR plan adjusts payments based on income and includes a minimum monthly payment, ensuring that borrowers can manage their debt without excessive taxpayer burden.
- Pell Grant Reform: The plan ensures Pell Grants are targeted at students who need them the most, while also expanding access to high-quality, shorter-term educational programs. It also closes loopholes that allowed wealthy families to receive Pell Grants, ensuring fairness for all taxpayers.
Read more about the bill here.
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