Introduction
On July 31, 2024, the Republican-led House of Representatives marked a significant shift in education policy by passing the “Student Loan Accountability and Career Development Act.” This comprehensive reform bill is intended to reshape the federal student loan system, targeting the financial burdens of higher education while promoting responsible borrowing practices and expanding access to vocational training. The approval of this legislation reflects ongoing debates about how best to address the complexities of the student debt crisis in the United States.
Key Provisions of the GOP Student Loan Reform Bill
The “Student Loan Accountability and Career Development Act” includes a variety of provisions aimed at reforming various aspects of the student loan system. One of the most notable changes is the introduction of borrowing caps designed to prevent over-indebtedness among students. Specifically, the bill limits total borrowing for undergraduate degrees to $25,000, with varying caps for graduate degrees based on the field of study. For industries that are experiencing high demand, such as medicine and engineering, the caps are set higher, thus acknowledging the financial realities that students in these disciplines face. Additionally, the bill eliminates the Parent PLUS loan program, which has been criticized for its potential to increase financial strain on families.
