House Republicans proposed changes to federal education funding that would preserve Pell Grant funding while eliminating subsidized loans for undergraduates. The measure surfaced in a fiscal 2027 budget proposal advanced by members of the House Appropriations Committee. The plan would increase the maximum Pell award by $50 to $7,445, but includes a provision—omitted from the official summary—ending subsidized federal loans for undergraduate borrowers. Higher education advocates pushed back, arguing the move would worsen affordability and risk student enrollment stability. The policy debate is unfolding amid sector financial pressure, including projections that private nonprofit colleges’ tuition discount rates are rising to the highest level in a decade as inflation erodes net tuition revenue.