Trump's Tax Law Could Raise College Costs for Students

Many U.S. college students, such as Vashti Trujillo, are worried that President Donald Trump's first signature legislative achievement in his second term may raise the costs of attending college. The tax and spending law, signed by President Trump, is set to slash the federal student loan programs that many students, like Trujillo, rely on to pay for their education. Education experts predict that the law will put strains on the budgets of many public universities, forcing them to increase tuition prices or cut programs. This could ultimately affect students who are planning to pursue higher education, including those who are double majoring in mechatronics engineering and data analytics like Trujillo.

Key Takeaways:

• The tax and spending law signed by President Trump is set to slash the federal student loan programs that many students rely on to pay for their education, including the Pell Grant program.
• Education experts predict that the law will put strains on the budgets of many public universities, forcing them to increase tuition prices or cut programs.
• The law may push state legislatures to reroute funds from higher education to safety-net programs, such as Medicaid, which the spending law cuts drastically.
• The new law will create new student loan repayment programs that will raise bills for millions of borrowers.
• Universities will feel a need to shift more support toward graduate students and away from undergrads.
• Many state legislatures may deprioritize support for higher education as a result of the funding cuts.
• The Trump administration and Republicans in Congress are confident that the new budget law will bolster college oversight and ultimately lower prices for students.
• Education Secretary Linda McMahon stated that the bill closes the open spigot of federal subsidies that drive up college costs and burden families.
• Nathan Grawe, an economics professor at Carleton College, called the spending law "a harbinger of challenges ahead" for higher education and stated that colleges and universities are deeply dependent on funding from a federal government that has spent far beyond its means.
• The new law will create new caps on graduate student borrowing, including a $20,000 per year per student limit, with a $65,000 total limit.
• The Grad PLUS program, which for decades has helped students pursue careers in medicine, law, and other training-intensive careers, will be unavailable to new students.

Statistics:

• Approximately 20 million Americans will lose some or all of their benefits through the Supplemental Nutrition Assistance Program (SNAP) as a result of the new law.
• Over 20 million Americans will be affected by the Medicaid cuts, which the Congressional Budget Office estimates will kick millions off their health insurance.
• The new law will raise bills for millions of borrowers through new student loan repayment programs.
• The new law will create a $1 trillion funding cut to Medicaid, which will take effect in 2028.
• The Grad PLUS program will be unavailable to new students after 2026.

Sources:

• USA TODAY, "Trump's tax law could raise college costs for students"
• Congressional Budget Office, "Budget and Economic Outlook: 2020-2030"
• Association of American Medical Colleges, "Medical Student Debt and the Future of the US Medical Workforce"
• National College Attainment Network, "College Access and Student Debt in the Trump Era"