Trump isn’t cutting Pell Grants, after all − but other changes could complicate financial aid for some students

The Conversation 

Jennifer L. Steele
September 24, 2025
As an education researcher who has studied the economic returns of higher education, I know that college degrees remain cost-effective investments for most students.
But college tuition has risen at roughly twice the rate of inflation during the past two decades, and federal student debt climbed 500% to US$1.6 trillion during that same period.
The Biden administration sought to address this problem with plans that accelerated student loan forgiveness for lower-income borrowers with small balances, allowing debt cancellation after 10 years of repayment, instead of 20 or 25.
However, the courts blocked those efforts, and the Trump administration has taken a sharply different approach.
Guided by evidence that higher borrowing limits contribute to tuition increases, the tax breaks and spending cuts bill that President Donald Trump signed into law in July 2025 brings changes to the federal financial aid system that prospective higher education students should understand.

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