A Congressional Budget Office score released Tuesday for House Republicans' update to the Higher Education Act finds the bill would reduce federal direct spending by $14.6 billion over 10 years, primarily because of changes to student loan programs.
The PROSPER Act, as Republicans have named the legislation, would cut spending on federal student loan programs by $26.3 billion and boost mandatory spending on the Pell Grant program by $12.2 billion, the CBO finds.
Among the changes to student loans that would be made in the legislation are the elimination of subsidized loans and an increase in the unsubsidized loan limit for undergraduates. The bill would also cap graduate student lending and parent lending.
Some of the biggest savings would come from the elimination of Public Service Loan Forgiveness and reducing forgiveness through income-driven repayment programs.
Read more at Inside Higher Ed: https://www.insidehighered.com/quicktakes/2018/02/07/cbo-house-bill-would-reduce-spending-146b