February 10, 2026

Trump’s education bill to reshape higher education with federal loan caps

Trump's education bill to reshape higher education with federal loan caps

President Trump’s “big beautiful bill,” set to bring significant changes to higher education in 2026, is likely to accelerate the trend towards “un-college” alternatives such as community colleges and short-term credential programs. This legislative package, passed by Congress last July, introduces caps on federal student loans, potentially pushing students to seek more cost-effective education pathways. It also extends Pell Grant eligibility to short-term workforce training at community colleges, addressing a growing demand for job-relevant skills in an evolving job market influenced by AI and diminishing entry-level positions.

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