The House Education and Workforce Committee on April 29 amended and approved the Student Success and Taxpayer Savings Plan (H. Con.Res. 14, PDF) by a party-line vote of 21-14 (PDF). During this markup, the committee proposed cuts to higher education programs, including several AAMC financial aid priorities, to comply with reconciliation instructions to identify at least $330 billon in savings over ten years [refer to Washington Highlights, April 11].
The bill would eliminate the Grad PLUS program, lower aggregate federal loan limits for graduate and professional students, create new income-driven and income-contingent repayment plans, exclude medical and dental students from counting time in internships or residency toward public service loan forgiveness (PSLF), create a risk-sharing formula that would require higher education institutions to pay back a portion of unpaid federal student loans back to the government, repeal regulations related to student aid, limit the regulatory power of the secretary of the Department of Education, and reduce Pell Grant eligibility.
In his opening statement, Committee Chair Tim Walberg (R-Mich.) said that the student loan system is “effectively broken and littered with incentives that push tuition prices upward.” Ranking Member Bobby Scott (D-Va.) expressed concerns about the elimination of federal student aid programs and repayment options in this bill, stating that “this bill would force student borrowers into unaffordable repayment plans.” Rep. Suzanne Bonamici (D-Ore.) detailed how the elimination of Grad PLUS would reduce health care access in her district, outlining the bill’s impact on health professions students.
During the markup, Democrats offered several amendments, including one from Rep. Lucy McBath (D-Ga.) that would eliminate the limitation on medical and dental students in PSLF, but all failed along party-lines.
AAMC President and CEO David J. Skorton, MD, and Chief Public Policy Officer Danielle Turnipseed, JD, MHSA, MPP, issued a statement emphasizing concerns with cuts to these programs. “Every aspiring physician deserves a fair chance at a medical education — no matter their economic background. Federal student aid programs like Grad PLUS loans and Public Service Loan Forgiveness help make that possible for nearly half of all medical students. Eliminating or restricting these critical programs would undermine the future physician workforce and ultimately make it harder for patients in communities nationwide to get the care they need.”
Following this markup, the bill will be combined with other committees’ reconciliation bills before proceeding to the full House for consideration. Senate committees are drafting their own package, which will need to be reconciled with the House bill before the legislation is finalized.