The Trump administration's proposed changes to student loan repayment plans could significantly impact borrowers and educational institutions. With a focus on reducing federal spending, the new legislation aims to streamline repayment options but faces criticism for potentially increasing financial burdens and limiting access to higher education.

House Republicans are pushing wholesale changes to financial aid, advancing a conservative agenda to curtail the federal role in education financing.

Congressional Republicans on Monday proposed to reduce eligibility for Pell Grants and impose new rules on student loan programs.