COMMITTEE ON ED & WORKFORCE PASSES ITS STUDENT SUCCESS AND TAXPAYER SAVINGS PLAN
(Washington, D.C.) Today, the committee on Education and Workforce passed reform to federal higher education programs, which will result in over $330 billion in taxpayer savings within 10 years. These reforms to federal student aid programs will boost student success while safeguarding taxpayer funds.
The Student Success and Taxpayer Savings Plan (SSTSP) focuses on reforming postsecondary education to strengthen accountability, streamline student loan options, and simplify student loan repayment. Central to key reforms is a renewed focus on the Pell Grant program, which will prioritize support for families and students in need while promoting academic completion. This legislation reinvests budgetary savings into Pell, ensuring its sustainability amid a projected $70 billion to $100 billion shortfall over the next decade. The measure also provides $10.5 billion for fiscal years 2026, 2027, and 2028 to combat the shortfall. By acting decisively now, we are securing the future of higher education for our most vulnerable students.
Additionally, the proposed reform introduces the Workforce Pell Grant Program, which will broaden eligibility to include students enrolled in short-term programs that meet workforce needs. This change allows students in programs that are not recognized by traditional accreditation systems to qualify for grants.
"The adjustments made to the Pell Grant focus on eligibility criteria, providing more flexibility to our students. These reforms modernize the Pell Grant to current educational standards while also promoting workforce development," stated Congressman Moylan.
SSTSP will reform student loan programs, making them more straightforward and affordable to ensure that students do not accumulate insurmountable debt. For undergraduate students, a sensible maximum borrowing limit of $50k will be set. Furthermore, the maximum aggregate loan limits are set at $100k for graduate students and $150k for professional students. These measures are designed to promote financial stability and empower students to pursue their academic goals without the daunting burden of unmanageable debt.
In addition, the student loan repayment system will be simplified into two plans: a fixed repayment plan and an income-driven repayment (IDR) plan for lower-income borrowers. IDR payments will be based on the borrower’s adjusted gross income (AGI), ranging from 1 to 10 percent, with a minimum monthly payment of $10. It will also offer assistance for on-time payments by waiving unpaid interest and providing a match payment-to-principal of up to $50.
Aspiring doctors and other medical professionals can find relief from the Public Service Loan Forgiveness (PSLF) program. There will be no cap on PSLF, and students currently in medical residencies will not have to make payments during this time. These students can take advantage of interest-free deferment for four years, with payments starting in the fifth year.
Finally, the University of Guam (UOG) and Guam Community College (GCC) will benefit from the proposed reforms, which establish the PROMISE Grant. This grant provides funds based on a formula that will reward colleges for strong earning outcomes, low tuition, and enrolling and graduating low-income students. The maximum award an institution can receive is set annually at $5k per federal student aid recipient.
"I want to thank Chairman Tim Walberg and my colleagues in the committee for their dedication in boosting student success and safeguarding taxpayer money," stated Congressman Moylan.
In support of this vital measure, Congressman Moylan underscores his unwavering commitment to creating an accessible education system for all. These reforms to federal student aid programs are a testament to his dedication to ensuring that every student can pursue their dreams without the burden of financial hardship.
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