Pittsburgh colleges still examining impact of federal student loan changes

Student financial aid offices are still determining how the federal budget passed earlier this month will impact students and enrollment.

The law sets new limits on federal student borrowing, changes repayment programs, and aims to hold colleges accountable for student debt.

Advocates say the changes will have dire consequences for borrowers and colleges.

In a blog post on the new law’s impacts, the Institute for College Access and Success said the effects could be felt for generations.

“Students, especially those from low-income backgrounds, will have fewer options to finance their education, in addition to potentially losing access to essential social safety net programs. Meanwhile, student loan borrowers will have fewer repayment plan options and steeper monthly payments,” the post said.

Most of the changes take effect next year. Federal loans for graduate students will be limited to $20,500 per year and $100,000 total when they previously could borrow their total program costs.

Parents who help their children take out loans will be limited to $65,000 per child.

Total undergraduate and graduate loans will be capped at $257,500 per person.

The debt load for Pennsylvania college graduates averaged $39,375 in 2020, according to the institute.

Source: U.S. Department of Education College Scorecard

The federal changes could have some students looking for different borrowing options, such as private loans, said Diona Brown, director of school services at the Pennsylvania Higher Education Assistance Agency, which offers state grants and loans to students.

Brown said PHEAA is still waiting for more guidance, but it appears the federal changes will not impact their programs.

Existing borrowers and new borrowers will be subject to different limits and repayment plans, which Brown said could cause confusion. She said the best option for students is to talk to the financial aid offices at their universities.

Marlin Collingwood, vice president of enrollment management at Point Park University, echoed that advice. He said the best work his financial aid team does is during one-on-one conversations with students.

“ Call them, visit them, have a conversation. I think students are always surprised at how many options there are at most schools from loans to private scholarships to merit scholarships,” Collingwood said.

Brown also advised students to fill out the Free Application for Federal Student Aid every year. The FAFSA should be available Oct. 1.

“ That will start their process for state aid as well as federal aid and institutional aid from their schools,” Brown said. “So, it’s very important that students complete that form.”

Carnegie Mellon University spokesperson Cassia Crogan said it is still analyzing the potential impact of the changes.

“We will be working to make sure talented and high-achieving students continue to have a pathway to attending CMU,” Crogan said.

According to its website, CMU boosted undergraduate financial aid by more than 86% between 2015 and 2024.

The university said between 2019 and 2024 it has reduced the share of students borrowing federal loans from 52% to 28%, cutting their total debt burden at graduation by nearly 30%.

Community College of Allegheny County President Quentin Bullock said his students will likely not feel the impacts of the new restrictions. He said few students take out loans and 88% of graduates leave debt-free.

“That speaks volumes,” he said. “This should have minimum impact on any of the programs at CCAC offers due to the mere fact of our affordability.”

The law also aims to hold institutions responsible for student loan debt by requiring that graduates of a program earn more than people with high school diplomas. The government could rescind loan eligibility from programs that it determines don’t provide a benefit.

Collingwood said they have no concern at Point Park that their programs could be targeted by the measure.

“ The goal of going to college should be to change the trajectory of your life,” he said. “And if you’re going to a college that’s providing you with a degree in a program that’s not gonna do that, then shame on [that college].”

One federal change will allow students to use Pell Grants — which are awarded based on financial need and don’t need to be repaid — for short term workforce training programs.

Bullock said that could benefit some CCAC courses. The college develops programs in partnership with industry to meet workforce needs. Examples include programs for nursing assistants and commercial drivers licenses.

“ This would also open the door for us to develop more short term programs that lead to a recognized industry credential…and provide opportunities for students to go directly into the workplace by earning that credential,” Bullock said.

Bullock said future programs could aim to meet needs in cybersecurity, information technology, culinary arts or advanced manufacturing fields.

Cuts to the Supplemental Nutrition Assistance Program could affect students who rely on the program. CCAC has food pantries available on all its campuses that Bullock said can help students who are affected.

Bullock noted enrollment for the upcoming year is strong. He said, as of July 24, enrollment was up 16.5% over fall 2024.