House Education and Workforce Committee Advances Major Student Aid Overhaul

On Tuesday, April 29, 2025, the House Education and Workforce Committee approved a sweeping budget reconciliation bill along party lines aimed at overhauling federal student aid programs and reducing spending by more than $350 billion over a decade. Democrats offered 34 amendments that were all rejected. The proposal now heads to the full House for consideration as part of a broader reconciliation package.

Of particular concern to the osteopathic community are provisions that eliminate the Grad PLUS loan program starting in 2026, cap borrowing limits for professional programs at $150,000 per borrower and implement institutional accountability penalties to hold educational institutions accountable for student loan outcomes.

AACOM has been actively advocating to reduce the harmful impact of these provisions on our community. We are pleased that the Committee listened to some of our concerns and added language basing institutional accountability payments on medical graduates’ earnings post-residency. However, we are still working to fully understand the impact of that change on our colleges of osteopathic medicine (COMs) and are seeking additional revisions to strengthen the language. AACOM was also successful in securing a provision that prevents student loan interest accrual during the first four years of residency-related forbearance.

AACOM remains very concerned with the elimination of the Graduate PLUS loan program, the loan caps for professional students and potentially the risk-sharing provisions as we continue to realize the full impact on our COMs. We are working with House and Senate allies to determine what can be done to mitigate the impact of the legislation. We are also collaborating with stakeholders within and outside osteopathic medicine to promote congressional changes. We encourage the OME community to continue to advocate with your House and Senate members in support of these goals.

For more information, please review the AACOM analysis of the bill and summary of the Committee markup.