Senate Rejects Measure to Repeal Student Loan Caps

WASHINGTON – Senate Republicans prevented the repeal of Trump administration regulations on June 24. The regulations set new federal student loan caps for graduate schools. Democrats introduced the failed measure, which met a party-line vote before a July 1 deadline when the new limits would take effect nationwide.

The changes stem from the “One Big, Beautiful Bill” Act passed last year. They resulted in significant shifts in college financial aid, though they received criticism from some Republicans over their implementation by the Trump administration.

Some GOP lawmakers, despite backing the act, expressed concern over how the caps might affect the healthcare workforce, specifically graduate nursing students. The Education Department was tasked with identifying fields eligible for a $200,000 borrowing limit. Nursing did not make the list.

The law ends the Grad PLUS lending program and limits Parent PLUS loans but leaves undergraduate lending mostly intact.

Senator Jeff Merkley, D-Oregon, presented a measure on June 24 to stop the new rules. He argued it was a “gift to predatory lenders,” pushing borrowers toward the private market. Merkley claimed that the argument about schools lowering tuition was unfounded, as they still needed to cover expenses for staff, infrastructure, and debt.

Meanwhile, Senator Bill Cassidy, R-Louisiana, countered Merkley’s claims. Cassidy believed the rules would press schools to reduce costs and reversing them completely would revert to what he described as an “administration’s student loan disaster.” Yet, he acknowledged concerns regarding the effects on graduate health care programs, emphasizing it as a separate issue.