Senate Republicans Reject Measure to Repeal Student Loan Caps

Senate Republicans rejected a measure on June 24 that sought to repeal Trump administration regulations imposing new federal student loan caps for graduate students. The failed effort from Democrats came just before a July 1 deadline, when the borrowing limits will become effective nationwide.

The regulations, part of the “One Big, Beautiful Bill” Act passed the previous year, introduced significant changes to the federal college financial aid system. Despite being a hallmark of Trump’s second-term legislation, some Republicans have voiced concerns about its impact, especially regarding graduate nursing students. These students face potential workforce shortages as their field of study did not qualify for an aggregate borrowing limit of $200,000.

The law also discontinues the Grad PLUS lending program while capping Parent PLUS loans, leaving undergraduate lending mostly unchanged.

Sen. Jeff Merkley, a Democrat from Oregon, proposed the measure on June 24. He argued for stopping the new student loan rules, labeling them as a “gift to predatory lenders” that would push students into the private loan market. Merkley refuted claims that restricting loans would force schools to lower tuition, citing the need for colleges to cover operating and infrastructure costs.

Conversely, Sen. Bill Cassidy, a Republican from Louisiana and the Senate’s education committee chairman, believed the rules would pressure schools to cut costs. He cautioned against reversing them, referring to past student loan challenges during the Biden administration. Nonetheless, Cassidy acknowledged concerns about how these regulations could affect graduate health care programs, illustrating the ongoing debate in Congress.

Zachary Schermele covers Congress for USA TODAY. Contact him at [email protected], and follow him on X at @ZachSchermele and on Bluesky at @zachschermele.bsky.social.