July 8, 2025
Trump’s “Big Beautiful Bill” Would Be a Disaster for Student Loan Borrowers
By Nic Wong
The proposed budget cuts would hurt millions of Americans, as the typical borrower with a college degree will see their student loan payments spike more than $2,928 per year.

While Americans tighten their belts to cope with the economic ramifications of the current administration’s policies, Congress is about to make things worse through a process called “reconciliation.” “So here we are at a time in which the cost of college is already too high for millions of students,” said Senator Elizabeth Warren. “Donald Trump and his Republican buddies in Congress are not lowering them. They are adding $400 a month on average to the family’s costs.”
Reconciliation is a budgetary process that allocates the money in the current budget bill, letting Congress decide which programs it will fund and which programs will be cut. During the current reconciliation cycle, Republican leadership presented their “Big, Beautiful Bill” which includes severe rollbacks to crucial programs such as Medicaid, public broadcasting, SNAP Benefits, cancer research, student loan programs, and education.
What does that mean for Americans with student debt? Through budget cuts, Congress plans to gut $350 billion from the Department of Education, thereby eliminating plans like Income Contingent Repayment and Pay As You Earn, which allow hardworking families to secure more affordable student loan payment plans, while restricting eligibility requirements for programs like Public Student Loan Forgiveness. These repayment programs allow student loan borrowers to stay current on their accounts and avoid falling into default.