H.R. 1 - The Big Beautiful Bill (Simplified) - Part 3 - Education and the Workforce

It's long, it's complicated, and Marjorie Taylor Greene (and probably most people she works with) hasn't read it. Let's not be one of those people. Here is a simplified version of a very complex, and very dangerous bill, that's easy to read and something we can all understand. Please share with friends and family. Thank you.

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TITLE 3 -- COMMITTEE ON EDUCATION AND WORKFORCE

30001 - STUDENT ELIGIBILITY

This portion of the bill refers to the Higher Education Act of 1965 and makes several amendments. These include revising any reference allowing for permanent residents of the U.S. or those able "to provide evidence from the Immigration and Naturalization Service that he or she is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident" and simplifying it down to just "citizens or nationals," lawfully-admitted "aliens," citizens of Cuba, and lawful residents in accordance with the Compact of Free Association (deals made with Pacific Island sovereign states). The amendment will take place on July 1, 2025 and will apply with respect to award year 2025-2026.

30002 - AMOUNT OF NEED; COST OF ATTENDANCE; MEDIAN COST OF COLLEGE

This section is in reference to the same Act and amends years of eligibility to '25-'26 and '26-'27). It includes semantics changes from "same academic workload" to "enrolled in the same program of study," etc., and updates to the years included in the bill. It also inserts a new section to clarify the "median cost of college" as the price of a program of study across all higher-education institutions. The amendment redefines "program of study" according to academic codes and credential level, undergraduate or graduate. Under "Exemption of Certain Assets," there is an amendment for family farms on which families reside, and small businesses owned and controlled by family. The amendment will take place on July 1, 2025 and will apply with respect to award year 2025-2026.

300011 - LOAN LIMITS

This section is in reference to the same Act and adds an amendment to eliminate subsidized Federal Stafford loans for undergraduate students, and Federal Direct Plus loans for graduate or professional students after July 1, 2026, and restrict parent borrowers on behalf of dependent students. The undergraduate annual loan limits is amended to be the difference of the median cost of the program of study (across all academic institutions, Harvard to the University of Montana) and the amount of Federal Pell Grant received. New loan limits are as follows: undergraduate $50,000, graduate $100,000, professional $150,000. If a student is not enrolled full-time, the loan limit will be in direct proportion to the percentage of credits. There is a 3-year exception for students who enroll prior to July 1, 2026.

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30021 - LOAN REPAYMENT

This section is in reference to the same Act and discusses loan repayment plans with a start date of July 1, 2026. All repayment (whether borrowed before or after said date) will be required for outstanding loans. An amendment is included to change references of repayment of a "Federal Direct PLUS Loan" to "an excepted Consolidation Loan." There will now be two repayment plans: a standard plan of 10 - 25 years, and a repayment assistance plan. The latter replaces the "Income-Contingent" repayment plan, which allowed for flexible payments based on your income, instead of a fixed payment over the loan tenure. However, this includes assistance for distressed borrowers who are not able to make a full-payment in a given month, for which they will not accrue interest. The minimum monthly payment for assistance is $10. For a yearly adjusted gross income (AGI) of $10,000 a monthly payment is not more than $120, up to $20,000 not more than 1%, up to $30,000 not more than 2%, up to $40,000 not more than 3%, up to $50,000 not more than 4%, up to $60,000 not more than 5%, all the way up to more than $100,000 at 10% of AGI. All amendments apply "with respect to any borrower who is in repayment before, on, or after the date of enactment."

30022 - DEFERMENT; FORBEARANCE

This section is in reference to the same Act, and includes amendments to eliminate loan deferment after July 1, 2025 for unemployment and economic hardship, but allows for forbearance up to 9 months or if the borrower is serving in a medical or dental internship.

30023 - LOAN REHABILITATION

This section is in reference to the same Act and amends Federal Family Education, direct, and Perkins loans, allowing for loans in default to be rehabilitated twice instead of just once. This includes a minimum payment of $10/month.

30024 - PUBLIC SERVICE LOAN FORGIVENESS (PSLF)

This section is in reference to the same Act, amending who is considered a "public servant." Medical/dental internships and residency programs are no longer included in this subheading as of July 1, 2025. Repayment Assistance Plan payments now qualify as PSLF payments.

30025 - STUDENT LOAN SERVICING

This section is in reference to the same Act, and will provide additional mandatory funds of $500,000,000 to the Department of Education to cover administrative and student loan costs.

30031 - ELIGIBILITY

This section is in reference to the same Act, and makes amendments to the AGI of a student. This includes foreign income from the student, the student's parents, or the student's spouse. This section is also amended to define "full-time student" as completing 30 semester or trimester hours, or 45 quarter credit hours per awarded year. Students whose student aid index equals or exceeds twice the amount of the total maximum for the Pell Grant will no longer qualify, nor will students enrolled less than half-time, as of July 1, 2026.

30032 - WORKFORCE PELL GRANTS

This section is in reference to the same Act, and states that beginning July 1, 2026, and each subsequent year, eligible students enrolled in workforce programs can apply for Pell Grants. This includes clocking at least 150, but less than 600 hours of instruction between 8 and 15 weeks. The education must align with "high-wage, high-skill...or in-demand industry sectors or occupations." Graduate students are not eligible, though students working towards a graduate program are.

30033 - PELL SHORTFALL

This section is in reference to the same Act, and raises the appropriation of funds for 2026 from $2,170,000,000 to $5,351,000,000; for 2027 from $1,235,000,000 to $6,058,000,000; and adding $3,743,000,000 for 2028 and $1,236,000,000 for each succeeding fiscal year.

30041 - AGREEMENTS WITH INSTITUTIONS

This section is in reference to the same Act, and allows for institutions of higher education participating in direct student loan programs to request an annual reimbursement for the "non-repayment balance" from students who have defaulted on loans, beginning in award year 2028-2029. This includes undergraduate and graduate students who completed their studies, and those who did not. Special circumstances include students with two or more programs of study and certain consolidation loans. If an institution of higher education fails to notify the non-repayment balance within 3 months, they will be required to pay that balance. If they fail to notify for 12 months, they will become ineligible for future direct loans. If they fail to notify for 18 months, they will become ineligible for future direct loans and Federal Pell Grants. If they fail to notify for 2 years, the institution will be ineligible to participate in any program for 10 years.

30042 - CAMPUS-BASED AID PROGRAMS

This section is in reference to the same Act, and adds "Subpart 11-- Promoting Real Opportunities to Maximize Investments and Savings in Education."

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420S - PROMISE GRANTS

This section states that the Secretary (currently Linda McMahon) will award PROMISE grants to eligible schools that submit "satisfactory application(s)."

420T - ELIGIBLE INSTITUTIONS; APPLICATION

In order to be eligible for a PROMISE grant an institution must meet the maximum total price guarantee requirements (i.e. locked tuition rates for a certain period of time), and describe how grant funds will be used and how they will collect and disseminate information on promising practices.

420U - GRANT AMOUNTS; FLEXIBLE USE OF FUNDS

This section discusses how the Secretary will determine the amount an institution receives for their PROMISE grant, an average based on the total amount awarded for the three previous years and the percentage of low-income students attending their school.

420V - AVAILABILITY OF FUNDS

This section talks about where the Secretary will get the money to cover the aforementioned grants. This includes primary funds from reimbursements and secondary funds from the previous award year. If there are insufficient funds, the total dollar amount in grants will be reduced.

420W - DEFINITIONS

This section defines terms like "value-added earnings" (student income), "geographic adjustment" (location of the institution), "earnings measurement period" (1, 2, or 4 years after program completion, depending on level of study), and "program length" (minimum amount of time specified in course guide). Per the aforementioned Act, an amendment is added to include reserve funds returned to the Secretary for the purpose of awarding PROMISE grants.

30051 - REGULATORY RELIEF

This section is in reference to the same Act, amending several references to "gainful employment" and discussing student hardship, including closed school discharge (when a school shutters before you graduate) and borrower defense repayment (if a school misled you or engaged in other misconduct or violation of state laws).

Linda McMahon, Secretary of Education

492A - LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR ISSUE REGULATIONS AND EXECUTIVE ACTIONS

This section gives the Secretary of Education authority to determine whether regulations or executive action should be passed or not, based on financial or adverse effect on the "economy, productivity, competitions, jobs, the environment, public health or safety, or state, local, or tribal governments and communities."

If you would like to read the bill yourself, click the link below.

The Big, Beautiful Bill

Ellie is an author, editor, and owner of Red Pencil Transcripts, and works with filmmakers, podcasts, and journalists all over the world. She lives with her family just outside of New York City.