Trump’s One Big Beautiful Bill Act was signed into law on July 4. The Big Beautiful Bill will provide tax cuts for billionaires while harming the working class exponentially.
This bill contains some especially terrible rhetoric that will greatly harm the American working class. It will harm students across the country, especially student loan borrowers. Additionally, U.S. Immigration and Customs Enforcement (ICE) will receive billions of dollars in additional funding.
ICE has already become a problem at the University of Utah, and with this funding, ICE could harm even more students. The Big Beautiful Bill will harm students at the U.
Lack of loan forgiveness
Through Trump’s budget cuts, Congress plans to cut $350 billion from the Department of Education. With these cuts, the typical borrower with a college degree will see their student loan payments spike by more than $2,928 per year. Students cannot afford this increase in monthly payments, meaning the amount of defaults is likely to increase. With this bill, loan forgiveness for students would dwindle greatly.
Students will be left to choose between two payment plans. The new Repayment Assistance Plan (RAP) or a standard plan. Borrowers will have to choose one of those plans between July 2026 and July 2028. RAP is proposed to replace the eliminated repayment plans.
Plans such as Income-Based Repayment (IBR), Pay As You Earn (PAYE) Repayment and Saving on a Valuable Education (SAVE) allow students to pay back their loans based on individual factors, including income. These plans will be phased out due to the Big Beautiful Bill. Once enrolled in RAP, borrowers will not be able to change their payment plan. RAP also removes the ability to have a zero-dollar monthly payment.
This includes those who are unemployed or making below a certain amount. RAP overall is more costly than any of the existing repayment plans and will only increase the financial burden of student loans on Americans.
Slashing grants
Not only does the Big Beautiful Bill harm loan repayment and reconciliation, but it will also slash federal Pell grant distribution. Eligibility to receive a grant will change, and the amount of grants distributed will diminish.
During the 2021-2022 academic year, an estimated 92% of Pell Grant recipients had a total family income at or below $60,000.
Under the Big Beautiful Bill, students who receive a full scholarship from a university will not be eligible to receive a Pell grant. Students pursuing unsubsidized federal loans for professional degrees, such as law or medicine, will face a borrowing limit of $50,000 per year, with a lifetime maximum of $200,000.
For those enrolled in advanced degree programs in nonprofessional fields, like history or philosophy, the borrowing cap will be set at $20,500 annually, with a lifetime limit of $100,00.
Deportation over education
ICE was recently at the U’s campus. ICE revoked student visas from over 20 students while the Trump administration advised them to “self-deport.” With Trump’s bill, the number of students who will wrongfully have their student visas revoked will likely expand greatly.
ICE’s current annual budget is around $10 billion. The agency will receive more than $100 billion through 2029. This budget will also allow the agency to hire 10,000 more officers in the next four years. This funding will make ICE the highest-funded law enforcement agency in the federal government. ICE already can detain undocumented immigrants, making the hiring of 10,000 more officers unnecessary.
This bill is a sweeping piece of legislation that prioritizes tax breaks for the wealthy while stripping away critical resources and protections for those who need them most. By slashing $350 billion from the Department of Education, The Big Beautiful Bill dramatically increases the cost of higher education. Students will face fewer repayment options, lose access to vital income-based repayment plans, and endure rising monthly loan payments, pushing many students toward default and financial hardship.
At the same time, the bill guts the Pell Grant program, making it harder for low-income students to access higher education. Trump’s Big Beautiful Bill sacrifices the futures of students, burdens borrowers with unmanageable debt and diverts resources away from education to fund fear-driven immigration policies. It is a clear message that this administration prioritizes billionaires and border patrols over books and borrowers.
The Big Beautiful Bill is shaping up to be nothing short of a big, terrible disaster. A deeply misguided attempt at reform that will hurt everyday Americans, undermine public trust and jeopardize the futures of students across the country.
e.thompson@dailyutahchronicle.com
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