Raising the Cost of Borrowing, Reducing Access: How the One Big Beautiful Bill Reshapes Financial Aid and Repayment
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| Title: | Raising the Cost of Borrowing, Reducing Access: How the One Big Beautiful Bill Reshapes Financial Aid and Repayment |
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| Language: | English |
| Authors: | Victoria Jackson, EdTrust |
| Source: | EdTrust. 2025. |
| Availability: | EdTrust. 1250 H Street NW Suite 700, Washington, DC 20005. Tel: 202-293-1217; Fax: 202-293-2605; Web site: https://edtrust.org/ |
| Peer Reviewed: | N |
| Page Count: | 9 |
| Publication Date: | 2025 |
| Document Type: | Reports - Evaluative |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Student Financial Aid, Paying for College, Loan Repayment, Federal Legislation, Undergraduate Students, Graduate Students, Higher Education, Middle Class, Minority Group Students, Student Loan Programs, Low Income Students, Debt (Financial) |
| Abstract: | The One Big Beautiful Bill Act (OBBBA) represents the most sweeping rollback of federal student aid and borrower protection in a generation. Signed into law by President Trump on July 4, 2025, after being passed by House and Senate Republicans, OBBBA cuts key federal financial aid programs for undergraduate and graduate students and eliminates critical consumer protections in the federal student loan repayment system. There are no provisions to make college less expensive, and the loss of loan aid is not replaced with more affordable alternatives. This paper explores how these changes will do lasting harm to the American higher education system and will hit low- and middle-income students and students of color the hardest as OBBBA makes higher education less affordable and debt repayment more expensive. |
| Abstractor: | ERIC |
| Entry Date: | 2026 |
| Accession Number: | ED678856 |
| Database: | ERIC |
| Abstract: | The One Big Beautiful Bill Act (OBBBA) represents the most sweeping rollback of federal student aid and borrower protection in a generation. Signed into law by President Trump on July 4, 2025, after being passed by House and Senate Republicans, OBBBA cuts key federal financial aid programs for undergraduate and graduate students and eliminates critical consumer protections in the federal student loan repayment system. There are no provisions to make college less expensive, and the loss of loan aid is not replaced with more affordable alternatives. This paper explores how these changes will do lasting harm to the American higher education system and will hit low- and middle-income students and students of color the hardest as OBBBA makes higher education less affordable and debt repayment more expensive. |
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