The Trump administration will upend student loan repayment programs and introduce new risks for students and borrowers as it implements the One Big Beautiful Bill Act (OBBBA). The forthcoming changes include new loan limits that will leave many postsecondary students with a financing gap, new student loan repayment plans that will force many student loan borrowers to make higher payments for longer periods, and the expansion of Pell Grants to short-term workforce programs that may not lead to better employment or earnings outcomes.
In a comment letter submitted on August 28, 2025, CAP argues that, when implementing the OBBBA, the U.S. Department of Education should develop regulations that give student loan borrowers the greatest flexibility and protections possible, while also collecting adequate data to understand the potentially disparate impacts of these new policies. The gainful employment and financial value transparency regulations offer important opportunities to protect students from low-quality programs and give students the information they need to make important decisions about where they enroll. Rigorous safeguards are needed around short-term programs that are now eligible for Pell Grants, including data-driven definitions to ensure these programs lead to real economic advancement for those who enroll.
Click here to read CAP’s comment letter.