NASFAA Joins Higher Ed Community Urging Senate to Reject Its Reconciliation Package
By Hugh T. Ferguson, NASFAA Managing Editor
As the Senate continues to work through and finalize its reconciliation package, NASFAA has signed onto a letter spearheaded by the American Council on Education (ACE) urging Senators to oppose the bill unless changes are made to several concerning provisions that would negatively impact students’ access to postsecondary education.
“We are particularly concerned about the reduced availability of federal student loans for graduate students; new and increased taxes imposed on our institutions of higher education; and significant cuts to other programs supporting millions of post-secondary students nationwide,” the letter reads.
While the Senate’s version of reconciliation legislation avoids many of the harmful provisions included in the House passed bill, which would impose “crippling” impacts on college affordability, it would still make college more expensive and difficult for millions of students to obtain.
Four key issues with the Senate’s legislation include: eliminating Pell Grant eligibility for students receiving grants or scholarships covering their entire cost of attendance; ; lowering borrowing limits for graduate student loans; eliminating Grad PLUS and capping Parent PLUS loans; and a new income-based repayment plan that would require loan payments for 30 years as opposed to existing plans with a maximum of 20 to 25 years of repayment.
“These cuts, combined with the proposed massive cuts to Medicaid and other programs that low-income students depend on for health care and basic needs, will have a disproportionately negative impact on the ability of low-income students to afford and access postsecondary education and skills training,” the letter reads.
While the letter acknowledges the bill’s $10 billion in new funding to address the growing Pell Grant shortfall, it also urges Congress to fully fund the program at least through fiscal year 2026.
Publication Date: 7/1/2025
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