The Senate Health, Education, Labor, and Pensions (HELP) Committee on Tuesday released reconciliation legislation (PDF) that proposes sweeping changes to federal student aid programs, including several provisions that would directly impact medical students and the institutions of academic medicine that support them. The committee released a section-by-section summary (PDF) and one-pager (PDF) detailing their proposals.
The reconciliation bill contains many provisions from the One Big Beautiful Bill Act (H.R. 1) passed by the House of Representatives on May 22 [refer to Washington Highlights, May 23]. This includes provisions that would eliminate the Grad PLUS Loan program, restrict Public Service Loan Forgiveness eligibility during medical residency, and consolidate repayment into two income-driven plans. This bill would also establish annual and aggregate borrowing limits for Unsubsidized Direct Loans to graduate and professional students. Aggregate borrowing limits in the Senate proposal are higher than in the House proposal, but both are less than current law. This bill also creates a new formula that would require institutions to report graduate earnings in order for programs to remain Title IV eligible, repeal existing borrowing regulations, limit the secretary of Education Department’s authority, increase loan servicing funds, and reduce Pell Grant eligibility.
The AAMC and the American Association of Colleges of Osteopathic Medicine led a letter on behalf of the physician community to House (PDF) and Senate (PDF) leadership, as well as leaders of relevant higher education committees, expressing concerns about reduction and elimination of important student aid programs for physicians [refer to Washington Highlights, June 6].
The legislation may undergo further revisions as the Senate parliamentarian reviews whether all provisions meet the requirements of the budget reconciliation process. Negotiations will continue into next week before the bill is considered on the Senate floor.