House Committee Advances Broad Student Loan Legislation Along Party Lines
Published February 05, 2024
By AACOM Government Relations
Advocacy Federal Policy Financial Aid OME Advocate
On January 31, 2024, the House Education and Workforce Committee held a lengthy markup on the College Cost Reduction Act (CCRA), H.R. 6951, a bill introduced earlier in January by Committee Chair Virginia Foxx (R-NC). Committee Democrats offered more than 25 amendments that failed along party lines before the bill passed by a party line vote of 22-19.
The broad legislation aims to reform the federal student loan system, but in the process terminates the Grad PLUS loan program, which is valuable to osteopathic medical students as they pursue their degree. The CCRA would also lower the aggregate borrowing limit for graduate and professional students and tie the annual borrowing limit to a new median cost of college. Additionally, the CCRA proposes a new risk-sharing plan that requires institutions of higher education to make annual payments based on student nonrepayment balances. The bill prohibits the Secretary of Education from proposing or finalizing loan repayment regulations if they would add to the deficit.
Although there are some concerns with the bill, it does remove loan origination fees and interest capitalization, while providing some regulatory relief that AACOM supports as highlighted in comments to the U.S. Department of Education (ED) in June 2023. Read AACOM’s summary of the markup and urge Congress to retain the Grad PLUS program in the AACOM Action Center.