U.S. House of Representatives Committee on Education and Labor

05/06/2025 | News release | Distributed by Public on 05/06/2025 10:50

ICYMI: The End of the Free College Lunch

In Case You Missed It, the Education and Workforce Committee passed theStudent Success and Taxpayer Savings Plan-a vital portion of Trump's big, beautiful bill to provide tax relief for American families and small business, rein in wasteful spending, and reduce the federal budget deficit. The bill saves taxpayers more than $350 billion while also addressing the college cost crisis through several key reforms. The Wall Street Journal Editorial Board outlines these policy changes.


The End of the Free College Lunch
Wall Street Journal Editorial Board
May 3, 2025
The press corps isn't telling you, but the major action in Washington is now shifting to Congress as Republicans move ahead with the planks of their reconciliation bill. There's much good policy news, including at last some serious reform of student loans.

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A report last week by the Bureau of Labor Statistics found the unemployment rate for recent associate degree (e.g., community college and vocational school) recipients in their 20s was 2.1% compared to 15.3% for four-year college grads and 8.4% for advanced degree recipients. Mull that one over: You have a higher chance of being unemployed these days if you go to college.

Student loans have also become one of the great policy failures of the age. Even before the pandemic, fewer than half of borrowers were paying down their debt. The federal student loan balance sheet has ballooned to $1.7 trillion, double what it was 15 years ago when Democrats used ObamaCare to nationalize the industry. Student debt would now exceed $2 trillion without the Biden loan forgiveness.

Enter House Republicans, who this week advanced a slate of reforms in the Education and Workforce Committee that they plan to attach to reconciliation. The goal is to hold colleges accountable for student outcomes and curb the open-ended loan buffet.

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This will reduce the incentive for colleges to raise tuition and add graduate programs, which often cost six figures. The legislation also limits student borrowing to the "median cost of college" for programs nationwide, which will effectively compel high-priced institutions to lower tuition or provide more financial aid.

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It would also reduce the government favoritism for traditional college degrees by letting borrowers use Pell grants for workforce training, provided that the programs meet specified job placement rates and earnings measures. This would promote innovative and more efficient vocational training in fields like managing data center equipment.

Read the full editorial here.
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