AFT President criticizes bill threatening Pell grants and student aid

Controversial Education Bill Sparks Debate Over College Affordability

WASHINGTON—The House Education and Workforce Committee's recent markup of a reconciliation bill has stirred significant controversy due to its potential impact on Pell grants and student debt. The proposed legislation is seen by critics as a drastic measure that could increase student debt burden and harm the U.S. economy.

AFT President Randi Weingarten has strongly criticized the bill, stating, “This bill takes a hatchet to American opportunity by slashing $330 billion in college affordability to pay for tax cuts for billionaires. Most of us agree that we should be giving more opportunities to students, not ripping them away.” According to Weingarten, the bill threatens to increase costs for borrowers while stripping away protections against exploitative educational institutions.

Access to affordable higher education has long been considered a crucial pathway to the middle class. The federal funding system is designed to ensure that individuals can pursue higher education without the burden of insurmountable debt. However, the proposed changes could make college unattainable for many, particularly first-generation and low-income students.

Weingarten highlighted the broader economic implications, referencing a recent analysis by the Student Borrower Protection Center. The analysis indicates that the bill could inflict $40 billion in annual damage to the U.S. economy by suppressing consumer demand.

“This is not about people paying their student loans; they should, and we have sued the loan servicers repeatedly for turning the payment system into a minefield that few can navigate. This is about taking away people’s opportunity to get ahead,” Weingarten emphasized.

The bill includes several significant measures that could affect students and educational institutions:

• Approximately 5 million students may be left without adequate financial aid.
• Reductions in Pell grants could impact 6.6 million low-income students annually.
• An imposition of $1.8 billion in fees on colleges, potentially increasing student costs.
• Elimination of affordable income-driven repayment plans, potentially tripling payments for many borrowers.
• Forcing over 425,000 students into private loans by ending Graduate PLUS loans.
• Ending borrower defense relief for defrauded students, affecting 1.7 million individuals.
• Removing protections against low-quality career education programs, affecting around 700,000 students.

As the debate continues, stakeholders emphasize the need to ensure that educational opportunities remain accessible to all, without disproportionately affecting middle-class, working-class, and poor Americans.

The AFT, representing 1.8 million members, includes educators from pre-K to higher education, government employees, healthcare workers, and early childhood educators.