NASFAA Statement on Passage of Reconciliation Bill
FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]
WASHINGTON, D.C., July 3, 2025 – The House on Thursday cleared the reconciliation bill, which is now headed to the White House for President Donald Trump’s expected signature and contains several provisions that will directly impact higher education programs.
While the final version of the bill eliminated several troubling provisions from earlier proposals, such as major changes to the need analysis formula, Pell Grant eligibility, and student loan programs, the law will nonetheless create challenges for prospective students since much of the bill is slated to take effect on July 1, 2026 and make college less affordable for students.
In response to this news, NASFAA President & CEO Melanie Storey released the following statement:
"While we are grateful that many of the most concerning aspects of the initial House bill were removed, we are disappointed that the final bill includes a number of provisions that will constrain access to postsecondary education, particularly for our most vulnerable students.
In addition, the bill creates aggressive deadlines to implement significant new provisions impacting millions of students. We look forward to working with the Department of Education on a clear and transparent process to ensure that all partners are prepared to support our students through these changes.
There are several concerning aspects of this bill, as well as significant changes to programs authorized by the Higher Education Act. Instead of focusing on a thorough and much-needed reauthorization of the Higher Education Act to address critical issues related to college access and affordability, this piece of legislation sought to adhere to an arbitrary deadline with policy that could limit opportunity and access for low-income students seeking to pursue post-secondary education.
Specifically, NASFAA remains concerned about the elimination of the Grad PLUS loan program, the elimination of deferment options for student loan borrowers facing economic hardship or unemployment, and new limits imposed on the Parent PLUS loan program that may drive borrowers to riskier private loans, which are not available to all borrowers.
At its core, the Higher Education Act reflects a promise that no student should be denied a college education because of cost. It stands as a reminder that investing in financial aid is investing in the potential of every student to shape a better future for themselves and their communities. We urge the administration and Congress to carefully monitor the impact this law has on enrollment, student retention, and access, and work to ensure that all students have the ability to access the financial aid they need to complete their post-secondary education."
NASFAA policy experts are available to speak to members of the media about the reconciliation process and its impact on student financial aid. To set up an interview, please email [email protected].
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About NASFAA
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 7/3/2025