In the midst of economic uncertainty, demographic decline, and ballooning student debt, the U.S. Senate has introduced a 940-page spending and tax reconciliation bill—dubbed by some lawmakers as the “One Big Beautiful Bill Act.” But behind the political branding lies a sweeping blueprint for disinvestment in working-class Americans, especially in higher education. If passed, the bill would not only accelerate the ongoing College Meltdown—it would codify it.
Slashing the Ladder: Pell Grant Restrictions
At the heart of the bill is a deceptively simple change: redefining full-time college attendance from 12 credits per semester to 15 credits. This shift may sound technical, but its consequences are enormous.
According to the Congressional Budget Office and the National Association of Student Financial Aid Administrators (NASFAA), this new definition would result in more than 4.4 million Pell Grant recipients receiving either reduced aid or losing eligibility entirely. An estimated 1.4 million students—mostly community college attendees, part-time students, older learners, and single parents—could lose access to Pell Grants altogether.
In a nation already grappling with declining college enrollments and rising student attrition, these changes will likely push thousands more out of the system and close the door for many before they ever step into a classroom.
Medicaid, SNAP, and the Vanishing Safety Net
Higher education does not exist in a vacuum. The Senate bill proposes more than $930 billion in cuts to Medicaid over the next decade. These cuts come alongside the imposition of work requirements and cost-sharing mandates that will affect millions of low-income Americans—including a significant share of college students.
Many students depend on Medicaid for mental health support, primary care, and prescriptions. Others rely on SNAP to eat. Under the proposed legislation, these essential supports would be stripped from the very students who need them to persist in school.
A 2023 GAO report found that over 30 percent of U.S. college students experience food or housing insecurity. This bill doesn’t just ignore that crisis—it actively worsens it.
Starving Public Colleges
The federal Medicaid cuts would ripple through state budgets, forcing legislatures to make difficult decisions. In many cases, that will mean diverting funds away from public higher education systems.
Already under strain from declining enrollment and years of austerity, public colleges—especially regional universities and community colleges—would face even deeper cuts. The likely result: tuition increases, faculty layoffs, program closures, and the elimination of student services.
In effect, the bill shifts the cost burden of public education from the collective public to individual students and families, reinforcing a model of privatized risk and public abandonment.
Loans Over Grants, Profits Over People
In parallel with Pell Grant restrictions, the bill unwinds critical student loan protections put in place over the last five years. It reverses enhancements to Income-Driven Repayment (IDR) plans and proposes the elimination of Biden-era loan forgiveness programs.
These changes benefit the student loan servicing industry, which stands to profit from lengthened repayment timelines and reduced cancellation pathways. Meanwhile, borrowers—especially those from low-income backgrounds—are pushed deeper into long-term debt peonage.
For a generation already saddled with debt and entering a labor market rife with instability, the Senate bill amounts to a massive wealth transfer upward—from struggling students to banks and servicers.
Enabling the Rise of Robocolleges
The weakening of financial aid and public support creates fertile ground for low-cost, low-quality alternatives: online diploma mills, edtech credential vendors, and "robocolleges" that replace faculty with algorithms.
Without adequate Pell funding or public college access, desperate students will be more likely to fall into the traps of for-profit institutions and unaccredited providers that promise quick credentials—but often deliver worthless degrees and predatory loans.
This shift doesn’t just hurt students. It undermines the quality of the U.S. workforce, degrades academic labor, and cedes the future of education to automation and private equity.
A Future for the Few
Ultimately, the “One Big Beautiful Bill” cements a two-tiered higher education system: elite universities insulated by billion-dollar endowments, and a gutted public sector limping along under austerity, privatization, and surveillance.
It is no coincidence that these policies are being introduced as the population ages, racial and economic inequality deepens, and faith in democratic institutions erodes. Higher education, once framed as a ladder of mobility, is becoming a narrow gangplank—offering escape only to the few who can afford it.
Meltdown Legislation
The College Meltdown is no longer a slow decline. It’s being legislated into crisis.
If passed, the Senate’s 940-page bill would mark a turning point: a systemic dismantling of the supports that make higher education possible for working-class Americans. From financial aid to public health, from state colleges to community safety nets, the tools of educational access are being hollowed out by design.
And while elite donors and legislators continue to fund their own children's paths to Princeton and Stanford, millions of other Americans will be left out—again.
Sources:
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NASFAA: Pell Grant Aid Analysis
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Congressional Budget Office (CBO) Medicaid Cut Estimates
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Inside Higher Ed: “Community Colleges Fear Pell Changes”
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GAO Report: “Food and Housing Insecurity Among College Students”
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Brookings Institution: “Cuts to the Social Safety Net and the Future of Higher Education”
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