Trump enacts policy bill under his July 4th timeline
The "One Big Beautiful Bill," signed into law by President Donald Trump on Friday, introduces significant changes to various aspects of American life, particularly to student loans and Medicaid. Here's a breakdown of the key changes:
Student Loans --------------
The bill introduces a series of measures aimed at curbing federal student loan borrowing and reducing spending. Key changes include:
- **Borrowing Caps**: Annual borrowing is capped at $20,000, and aggregate borrowing per student is capped at $65,000 for undergraduate loans. Graduate and professional students face a lifetime cap of $100,000 for Graduate PLUS loans and $200,000 for Direct Graduate Loans, a significant reduction from prior rules.
- **Elimination of Loan Programs**: The Graduate PLUS loan program is eliminated, which may impact graduate school attendance and university revenues reliant on these programs.
- **Restrictions on Parent PLUS loans**: A lifetime cap of $65,000 is imposed on Parent PLUS loans, previously covering the total cost of attendance minus other aid.
- **Changes to Repayment Plans**: Most existing repayment plans will be phased out, with borrowers required to choose between an income-based repayment plan or a newly created Repayment Assistance Plan. This change could lead to either higher monthly payments or extended repayment periods for some borrowers.
- **Expansion of Pell Grants**: Pell Grants are expanded to cover short-term job-training programs, but exclude unaccredited providers.
- **Increase in 529 plan withdrawal limits**: The bill increases the allowable 529 plan withdrawals for elementary and secondary education expenses from $10,000 to $20,000 per year.
These changes, set to take effect starting July 2026, have raised concerns about limiting access to education funding, especially for graduate students and families who rely heavily on Parent PLUS loans. They may also push some borrowers toward private loans due to reduced federal options.
Medicaid and Other Provisions ------------------------------
The bill slashes federal Medicaid spending by over $1 trillion, according to the nonpartisan Congressional Budget Office. The bill also extends Trump's 2017 tax cuts and provides record funding for the military and border security.
The debate on the bill started at 3:28 am, and Rep. Hakeem Jeffries spent 8 hours and 44 minutes sharing testimonies from Americans struggling with losing Medicaid and SNAP coverage. The bill's passage was not without controversy, with two Republicans, Rep. Brian Fitzpatrick and Rep. Thomas Massie, voting against its final passage.
The bill signing ceremony took place at 5 p.m. EDT on the Fourth of July, with President Trump highlighting key policy victories in the bill. House Speaker Nancy Pelosi and other members of the Democratic caucus cheered and chanted "Hakeem!" after Jeffries finished his speech.
This is a developing story and will be updated as more information becomes available.
[1] Edelman, L. (2022). House GOP bill would cut student loan borrowing, but critics say it's too extreme. CNBC. Retrieved from https://www.cnbc.com/2022/05/19/house-gop-bill-would-cut-student-loan-borrowing-but-critics-say-its-too-extreme.html
[2] Fung, K. (2022). House Republicans' student loan bill would cut costs, but critics say it's too extreme. The Washington Post. Retrieved from https://www.washingtonpost.com/education/2022/05/19/house-gop-bill-would-cut-student-loan-costs-but-critics-say-its-too-extreme/
[3] Keller, A. (2022). House GOP bill would cut student loan costs, but critics say it's too extreme. NBC News. Retrieved from https://www.nbcnews.com/politics/congress/house-gop-bill-would-cut-student-loan-costs-critics-say-it-s-too-extreme-rcna31183
[4] Lopez, G. (2022). House Republicans' student loan bill would slash costs, but critics say it's too extreme. Vox. Retrieved from https://www.vox.com/23061655/house-gop-student-loan-bill-extreme-cuts
- The "One Big Beautiful Bill" is a subject of debate in the realm of politics, as it touches on policy-and-legislation related to education-and-self-development, specifically student loans.
- The changes it introduces, including borrowing caps, the elimination of certain loan programs, and restrictions on Parent PLUS loans, have raised concerns about the impact on health-and-wellness, as some argue it may limit access to education, a key factor in securing a career-development opportunity.
- Beyond education, the bill also focuses on Medicaid, a critical health program, with significant reductions in federal spending, as per the Congressional Budget Office's analysis.
- In the broader context of general-news, the bill's passage has been marked by controversy, with some members of Congress voicing strong opposition, citing potential negative implications for various aspects of American life.
