White House Proposes Limits on Some Federal Student Loans

Credit: Newsy Studio
Published on March 19, 2019 - Duration: 01:06s

White House Proposes Limits on Some Federal Student Loans

As part of proposed reforms to the Higher Education Act, the Trump administration is suggesting putting a cap on federal student loan borrowing.

White House Proposes Limits on Some Federal Student Loans

The White House  wants to put limits on federal student loans for graduate students and parents of undergraduates.    It's part of suggested changes to the  Higher Education Act .

The Trump administration says one of the goals of the reforms is to encourage universities to lower their tuition.  Some experts  have linked unlimited borrowing to higher college tuition rates.   There is already a cap on how much undergraduate students can borrow from the federal government.

But parents and graduate students  can borrow  as much as 100 percent of attendance costs.

The report, released Monday, didn't put a number on what the new limit should be.  The proposal also suggested simplifying student loan repayment options and expanding the Pell Grant program to certain lower-income students.  President Donald Trump's 2020 budget  outlined other potential changes to higher education, including getting rid of subsidized student loans and calling for quicker student loan forgiveness.  The updates to the Higher Education Act would still have to be approved by Congress.  Analysts estimate  that national student loan debt reached almost $1.5 trillion last year.  Additional reporting from  Newsy affiliate CNN . 

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