Skip Navigation
Edvisors Star Logo
Edvisors Logo
  • Compare Lenders
    • PRIVATE STUDENT LOANS
    • REFINANCE STUDENT LOANS

    featured articles

    • Best Private Student Loans for May 2025
    • Student Loan Comparison: Federal Loans vs Private Loans
    • Parent PLUS Loans vs Private Student Loans
    • How Does Interest on Student Loans Work?
    • Private Student Loan Cosigner: Everything you Need to Know
    • View All Articles >
    Earnest Private Student Loan

    Variable Rates: 4.99% - 16.85% APR1

    Fixed Rates: 3.47% - 16.49% APR1

    Apply Now

    featured articles

    • Compare Lenders
    • Best Student Loan Refinance Companies for May 2025
    • Federal Student Loan Repayment Plans
    • Student Loan Forgiveness: How to Get Student Loans Forgiven
    • Repayment Plans for Private Student Loans
    • Parent PLUS Loan Forgiveness
    • View All Articles >
    Earnest Private Student Loan

    Variable rates as low as: 5.88% APR (with Autopay)*

    Fixed rates as low as: 4.25% APR (with Autopay)*

    Apply Now
  • Scholarships
    • COLLEGE GRANTS
    • COLLEGE SCHOLARSHIPS
    • EMPLOYER
    • MILITARY

    featured articles

    • What's the difference between scholarships and grants?
    • Graduate Fellowships
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • How to Find Scholarships
    • Top Tips for Winning Scholarships for College
    • Apply for Free Scholarships for College
    • Most Popular Scholarships for College Students in 2025
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • What is Federal Work Study Program?
    • Employer Tuition Assistance Programs: How Do They Work?
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • GI Bill
    • Military Service Academies
    • ROTC Scholarships
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

  • Plan for College
    • CAREERS
    • COLLEGE ADMISSIONS
    • FAFSA
    • SCHOLARSHIPS
    • PAYING FOR COLLEGE
    • STUDENT LIFE BLOG

    featured articles

    • Best Job Search Sites May 2025
    • Resumes That Get Noticed
    • High Paying Careers
    • STEM Careers
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • Measuring Academic Fit: Reach, Match and Safety Schools
    • Need-Blind Admissions
    • How Long is a College Essay
    • When are College Applications Due
    • How to Write a Good College Essay
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • Filing the FAFSA 2025-2026: A Simple Guide for Students
    • FAFSA Deadlines for 2025-2026
    • FAFSA FAQ - Your FAFSA Questions Answered
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • Most Popular Scholarships for College Students in 2025
    • Apply for Free Scholarships for College
    • College Scholarships for Kids
    • Most Prestigious Undergraduate Scholarships
    • Las mejores becas para estudiantes hispanos y latinos
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • How to Pay for College
    • Tuition Payment Plans
    • Pros and Cons: Borrowing From My 401K to Pay for College
    • Paying College Tuition with a Credit Card
    • Best Ways to Pay for College Without Financial Aid
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

    featured articles

    • Financial Aid Disbursement: When and How You Will Get It
    • Should I Pay Off My Student Loans Right Now
    • How to Minimize Student Loan Debt
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    This is an advertisement.

  • Student Loans
    • FAFSA
    • PRIVATE STUDENT LOANS
    • FEDERAL STUDENT LOANS
    • REPAY STUDENT LOANS
    • LENDER REVIEWS

    featured articles

    • Filing the FAFSA 2025-2026: A Simple Guide for Students
    • FAFSA FAQ - Your FAFSA Questions Answered
    • FAFSA Deadlines for 2025-2026
    • FAFSA School Codes
    • FAFSA 2023-2024 Guide & Resources
    • View All Articles >
    Earnest Private Student Loan

    Variable Rates: 4.99% - 16.85% APR1

    Fixed Rates: 3.47% - 16.49% APR1

    Apply Now

    featured articles

    • Best Private Student Loans for May 2025
    • Student Loan Comparison: Federal Loans vs Private Loans
    • Parent PLUS Loans vs Private Student Loans
    • How Does Interest on Student Loans Work?
    • Private Student Loan Cosigner: Everything you Need to Know
    • View All Articles >
    Earnest Private Student Loan

    Variable Rates: 4.99% - 16.85% APR1

    Fixed Rates: 3.47% - 16.49% APR1

    Apply Now

    featured articles

    • Filing the FAFSA 2025-2026: A Simple Guide for Students
    • FAFSA FAQ - Your FAFSA Questions Answered
    • The complete guide to federal undergraduate student loans
    • What are Federal Parent PLUS Loans and How to Apply
    • Financial Aid for Graduate School
    • Compare Subsidized and Unsubsidized Student Loans
    • View All Articles >
    Earnest Private Student Loan

    Variable Rates: 4.99% - 16.85% APR1

    Fixed Rates: 3.47% - 16.49% APR1

    Apply Now

    featured articles

    • Best Student Loan Refinance Companies for May 2025
    • Federal Student Loan Repayment Plans
    • Student Loan Forgiveness: How to Get Student Loans Forgiven
    • Repayment Plans for Private Student Loans
    • Should You Refinance Federal Student Loans?
    • Parent PLUS Loan Forgiveness
    • View All Articles >
    Enter the Repayment Relief Sweepstakes

    This is an advertisement.

    featured articles

    • Sallie Mae Student Loan Review
    • College Ave Student Loan Review
    • SoFi Student Loan Review
    • Ascent Student Loan Review
    • View All Articles >
    Earnest Private Student Loan

    Variable Rates: 4.99% - 16.85% APR1

    Fixed Rates: 3.47% - 16.49% APR1

    Apply Now
  • Credit Cards
    • CARD REVIEWS
    • BEST CREDIT CARDS
    • CREDIT CARD FAQS

    featured articles

    • Petal® 2 Visa® Credit Card Review
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    This is an advertisement.

    featured articles

    • Best Credit Cards for 2025
    • Best Cash Back Credit Cards
    • Best 0% Introductory APR Credit Cards
    • Best Secured Credit Cards for 2025
    • Best Balance Transfer Credit Cards
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    This is an advertisement.

    featured articles

    • How to Build Credit?
    • What Age Can You Get a Credit Card?
    • What is a Secured Credit Card?
    • What is an Unsecured Credit Card?
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    This is an advertisement.

  • Money Management
    • BANKING
    • BUDGETING
    • SAVING
    • DEBT MANAGEMENT
    • CREDIT
    • INVESTING
    • RISK MANAGEMENT

    featured articles

    • What is Online Banking
    • Student Checking Accounts
    • Debit Cards with Rewards
    • View All Articles >
    Chase College Checking Visa Debit

    This is an advertisement.

    featured articles

    • Best Budgeting Apps May 2025
    • Budgeting Tips
    • Budgeting for Beginners
    • View All Articles >
    YNAB budgeting logo

    This is an advertisement.

    featured articles

    • Financial Goals
    • How to Save Money as a College Student
    • What is an Emergency Fund
    • View All Articles >
    YNAB budgeting logo

    This is an advertisement.

    featured articles

    • How to Pay Off Debt
    • Debt Relief
    • What is a Debt Management Plan
    • View All Articles >
    YNAB budgeting logo

    This is an advertisement.

    featured articles

    • How to Check Your Credit Score
    • Best Credit Building Apps May 2025
    • What is Credit?
    • View All Articles >
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    This is an advertisement.

    featured articles

    • Investing for Beginners
    • Best Investment Apps May 2025
    • Understanding the Stock Market
    • View All Articles >
    YNAB budgeting logo

    This is an advertisement.

    featured articles

    • What is Risk Management
    • How to Prevent Identity Theft
    • What is Insurance
    • View All Articles >
    YNAB budgeting logo

    This is an advertisement.

  • Student LIFE Blog
  • Compare Lenders
    • Private Student Loans
    • Refinance Student Loans
  • Scholarships
  • Plan for College
  • Student Loans
  • Credit Cards
  • Money Management
  • Student LIFE Blog
Login
Register
  • Dashboard
  • My Profile
  • Logout
Search Box Form
Win a $2,500 Scholarship
Need money for college? Enter our monthly scholarship sweepstakes.
Enter Here
Advertiser Disclosure
×

Edvisors (“Edvisors Network, Inc.”) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans. Loan offers from participating lenders that appear on our websites are not affiliated with any college and/or universities, and there are no colleges and/or universities which endorse Edvisors’ products or services. Lender search results do not constitute an official college preferred lender list. Edvisors receives compensation from lenders that appear on this site. This compensation may impact the placement of where lenders appear on this site, for example, the order in which the lenders appear when included in a list. Not all lenders participate in our sites and lenders that do participate may not offer loans to every school.

Edvisors is not a lender and makes no representations or warranties about your eligibility for a particular loan or financial aid. Lenders are solely responsible for any and all credit decisions, loan approval and rates, terms and other costs of the loan offered and may vary based upon the lender you select. Please check with your school or lender directly for information related to your personal eligibility.

Edvisors has endeavored to provide accurate information. However, the results provided by lenders are for illustrative purposes only and accuracy is not guaranteed, as such, Edvisors assumes no responsibility for errors or omission in the information provided.

×
Get Your Free Guide to Filing the FAFSA Today!

Thank you for your interest in Edvisors' 2020-2021 Guide to Filing the FAFSA.

Please complete the form below to access your free copy.

Thank you! Click here to download your free FAFSA Guide.

I am a:

×
College knowledge starts here!

Enter your email below to receive your Student Loan Handbook from Edvisors.

Please check your email for the Student Loan Handbook.

After Navigation
Home » Blog » Are Major Changes Coming to Federal Student Aid Programs?
  • Contents
  • The Student Success and Taxpayer Savings Plan
  • Proposed Changes to Federal Student Aid Programs
  • Redefining the Cost of Attendance
  • Proposed Changes to Pell Grant Eligibility Requirements
  • New Workforce Pell Grant Program
  • Elimination of Subsidized and Grad PLUS Loans
  • College Accountability for Loan Outcomes
  • The Status of the House Bill
  • What Students Should Expect

Are Major Changes Coming to Federal Student Aid Programs?

Photo of Elaine Rubin
By Elaine Rubin
May 7, 2025
Email This Article
Fill out the form below to send a copy of this article to your email.
By clicking "Submit" I have read and agree to the Edvisors' Terms of Use and Privacy Policy. We strongly encourage you to read our Privacy Policy to understand how we use and share your information.
A copy of this article has been sent to your email.

While nothing is finalized, the Student Success and Taxpayer Savings Plan, introduced by House Republicans, signals some significant potential changes to the federal student aid programs.

Many of these proposed changes could take effect as early as the 2026-2027 academic year. Whether you’re a student, a parent, or an educator, understanding these potential shifts can help you plan ahead.

The Student Success and Taxpayer Savings Plan

The new proposal introduced by the House Education Committee aims to fundamentally reshape multiple aspects of federal student aid programs. The bill includes changes to loan limits, repayment plans, and how colleges are held accountable for student loan outcomes. But more than that, it introduces reforms that could alter how federal aid is awarded to students.

Proposed Changes to Federal Student Aid Programs

Make sure to check out our blog from a few days ago which broke down some of the impacts to the federal student loan program. Let's go over some areas where impacts may be felt for students receiving federal student aid.

Redefining the Cost of Attendance

Currently, colleges set their own Cost of Attendance (COA), which includes tuition, fees, housing, food, transportation, and other expenses. Schools calculate this based on local and program-specific estimates. For example, the COA for a big-city college is higher than for one located in a small town.

Under the new proposal, colleges would still develop their COA but would be required to submit this data to the U.S. Department of Education. A new “median cost” figure determined by the Department would then become the uniform COA used to calculate federal Pell Grants and student loan awards (excluding parent PLUS loans).

There are some impacts of this to consider:

  • Potential Limitations: The median COA may not reflect the actual expenses for some students, especially in high-cost areas. This could result in students receiving financial aid that doesn’t cover their full costs.
  • Shift in Aid Sources: If federal aid doesn’t cover expenses, families may turn to private loans or parent PLUS loans to fill the gap.
  • Pressure on Colleges: Schools might feel pressure to keep their costs within the median COA, potentially lowering tuition, and fees over time. However, this change will likely take years to normalize.

Proposed Changes to Pell Grant Eligibility Requirements

The federal Pell Grant serves as a vital lifeline for countless students, particularly those from low-income families. Its flexibility is one of its greatest strengths, as it is currently available to part-time and even less-than-half-time students.

The proposed bill seeks to change the enrollment requirements for Pell Grant eligibility. Currently, to be classified as a full-time student, a student must complete 24 credits per year. The new proposal aims to increase this requirement to 30 credits per year for full-time status.

Historically, Pell Grants have been accessible to students enrolled less than full-time and has been an option for student's enrolled in short-term programs. Yet, under the proposed changes, students would need to complete at least 15 semester hours annually to qualify. This adjustment could significantly limit the grant's availability for part-time students or those enrolled in short-term programs.

New Workforce Pell Grant Program

A new “Workforce Pell Grant” would be introduced for short-term programs (150–600 clock hours over 8–15 weeks) in high-demand industries as determined by the State. These programs must provide stackable credentials aligned with state-defined high-skill or high-wage occupations.

Students enrolled in a program cannot double-dip and receive both types of Pell Grants.

Elimination of Subsidized and Grad PLUS Loans

Currently, subsidized loans and Grad PLUS loans are key components of federal student aid. Subsidized loans don’t accrue interest while students are in school, and Grad PLUS loans help graduate students cover higher education costs.

The bill proposes eliminating both subsidized loans and Grad PLUS loans. This change would require students to borrow all unsubsidized loans which accrue interest immediately, increasing overall cost for borrowers. And without Grad PLUS loans, graduate students may not have enough funding to cover the costs of their program and may need to seek private student loan options.

College Accountability for Loan Outcomes

Currently, schools are held accountable through the Cohort Default Rate (CDR), which measures the percentage of borrowers who default on their loans within three years of entering repayment.

The new proposal would add stricter accountability measures. Schools will face penalties if their graduates have high student loan default rates. Starting in 2027, colleges could be required to reimburse the federal government for a portion of unpaid student loans based on factors like tuition price, graduate earnings, and completion rates.

This could put pressure on schools to reduce costs in order to prevent excessive borrowing for certain programs. However, this may disproportionately impact high-demand fields that typically lead to lower-paying careers, increasing the likelihood of loan defaults. Programs like teaching and social work, which are essential but often less lucrative, could be at risk of being cut by institutions with high tuition fees due to the financial risks associated with their graduates.

The Status of the House Bill

While this bill has passed the House Education Committee, its ultimate fate is uncertain. Experts predict it will pass the House but could face challenges in the Senate. However, as part of a budget reconciliation process, it only requires a simple majority vote for passage.

For now, students enrolling for the 2025–2026 academic year shouldn’t expect major changes. Most of the proposed reforms are geared toward future academic years, giving schools and students time to prepare.

What Students Should Expect

Major changes to federal student aid programs don’t happen overnight, but understanding what’s coming can help students, families, and educators prepare. If this bill passes, it could redefine access to financial aid, the type of loans available, and even how colleges operate.

Now is the time to start planning. Whether you’re a student exploring funding for your education or a school administrator, staying informed is the best way to adapt to these potential shifts.

Share

Elaine Rubin

Elaine Rubin is the Director of Corporate Communications at Edvisors. She has worked in higher education finance for more than 10 years, and provides information and advice from both personal and professional experiences. Elaine holds a degree in Political Science with a concentration in Public Policy and Administration from Northeastern University.

Find Elaine Rubin on LinkedIn.

If you would like to schedule an interview with Elaine, please reach out to us at [email protected]

About Edvisors

For 20 years we have been known as one of the largest and most trusted resources to help you find your path to success. Everyone needs to find their own path, and we know that first-hand. Helping you reach your educational and financial goals without stress, is our mission. Let's face it, it may be unavoidable to borrow money, but there are ways to do it wisely, including making the right choices up front, as well as during repayment. If we can help you make an informed and careful decision, we consider that a good day in the office.

Find information on this site to help you plan and pay for college as well as manage your money with confidence.

Expected Federal Student Loan Interest Rates for 2025-2026 Previous Article Blog Home Economic Impacts Expected Due to Reduced Federal Spending Next Article
Could You Be Saving More?
Subscribe to Edvisors' Student LIFE Newsletter to receive up-to-date financial aid information and advice, explore scholarship opportunities, loan repayment options, and learn expert strategies on how to plan and pay for college.
Newsletter Form
By clicking "Subscribe" I have read and agree to the Edvisors' Terms of Use and Privacy Policy. We strongly encourage you to read our Privacy Policy to understand how we use and share your information.
Thank you for subscribing to our newsletter.
We care about your privacy

This website uses cookies to offer you the most relevant marketing and targeted advertisements which in some states may be considered a sale of your personal information. You may exercise your right to opt out by clicking on deny cookies. Please accept cookies for the optimal experience. You can withdraw or modify your consent for non-essential cookies at any time by visiting Cookie Settings page

This website uses cookies for targeted advertising which in some states may be considered a sale of your personal information. You may opt out by clicking on deny cookies. Please accept cookies for the optimal experience. You can change your consent for such cookies via the Cookie Settings page

Edvisors
  • About Us
  • Official Rules
  • Careers
  • Team
  • Testimonials
Resources
  • Blog
  • Newsletter
  • Tools and Calculators
  • Video Resources
  • Financial Terms Glossary
  • Site Map
Media
  • Edvisors In the News
  • Press
Contact Us
  • Help
  • Ask the Edvisor
  • Student Aid FAQ
  • Directions
Partners
  • Advertise
  • Become an Affiliate
  • Link to Us
Legal
  • Terms of Use
  • Privacy
  • Consumer Health Privacy Notice
  • General Website Disclaimer
  • Accessibility Statement
  • Interest-Based Ads
  • Notice at Collection
  • Cookie Settings
  • Your Privacy Choices Your Privacy Choices Icon

Better Business Bureau logo

Edvisors provides expert advice on planning and paying for college. On Edvisors.com easily compare student loan lenders, learn how to apply for financial aid, and discover scholarships. Learn about federal and private student loans for students and parents, how and when to apply to college, and more!

Edvisors (“Edvisors Network, Inc.”) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans. Loan offers from participating lenders that appear on our websites are not affiliated with any college and/or universities, and there are no colleges and/or universities which endorse Edvisors’ products or services. Lender search results do not constitute an official college preferred lender list. Edvisors receives compensation from lenders that appear on this site. This compensation may impact the placement of where lenders appear on this site, for example, the order in which the lenders appear when included in a list. Not all lenders participate in our sites and lenders that do participate may not offer loans to every school.

Edvisors is not a lender and makes no representations or warranties about your eligibility for a particular loan or financial aid. Lenders are solely responsible for any and all credit decisions, loan approval and rates, terms and other costs of the loan offered and may vary based upon the lender you select. Please check with your school or lender directly for information related to your personal eligibility.

Edvisors has endeavored to provide accurate information. However, the results provided by lenders are for illustrative purposes only and accuracy is not guaranteed, as such, Edvisors assumes no responsibility for errors or omission in the information provided.

Copyright © 1998-2025 by Edvisors Network, Inc. All rights reserved.

All other trademarks and service marks displayed on Edvisors Network, Inc. websites are the property of their respective owners.

Edvisors Network, Inc. 350 S. Rampart Blvd, Suite 200, Las Vegas, NV 89145

Copyright © 2025 by Edvisors.com. All rights reserved.