White House Proposes Limits On Some Federal Student Loans

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White House Proposes Limits On Some Federal Student Loans
As part of proposed reforms to the Higher Education Act, the Trump administration is suggesting putting a cap on federal student loan borrowing.
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The White House wants to put limits on federal student loans for graduate students and parents of undergraduates.   

It's part of suggested changes to the Higher Education Act. The Trump administration says one of the goals of the reforms is to encourage universities to lower their tuition. 

Some experts have linked unlimited borrowing to higher college tuition rates.  

There is already a cap on how much undergraduate students can borrow from the federal government. But parents and graduate students can borrow as much as 100 percent of attendance costs.

The report, released Monday, didn't put a number on what the new limit should be. 

The proposal also suggested simplifying student loan repayment options and expanding the Pell Grant program to certain lower-income students. 

President Donald Trump's 2020 budget outlined other potential changes to higher education, including getting rid of subsidized student loans and calling for quicker student loan forgiveness. 

The updates to the Higher Education Act would still have to be approved by Congress. 

Analysts estimate that national student loan debt reached almost $1.5 trillion last year. 

Additional reporting from Newsy affiliate CNN