Overview
- Education Secretary Linda McMahon, who testified Thursday to the House Education and Workforce Committee, faced sharp questions on finalized graduate loan caps set to take effect July 1 and on plans to shrink the department.
- Under the new rule, students in 11 designated professional fields can borrow up to $50,000 a year and $200,000 total, while other graduate programs are capped at $20,500 a year and $100,000 total, leaving fields like nursing, education and social work outside the higher limits.
- Democrats and some Republicans warned the limits could squeeze graduate nursing and other high-need programs, while McMahon said lower caps will push colleges to cut prices and noted FAFSA fixes and anti-fraud work that blocked over $1 billion in attempted aid scams.
- Lawmakers challenged the transfer of more than 110 education programs to other federal agencies, with Democrats calling the moves unlawful under the Economy Act and citing stalled civil-rights enforcement and up to $38 million spent on Office for Civil Rights staff kept on leave.
- Bipartisan bills and a new resolution aim to expand the “professional” definition or undo the caps, signaling more oversight and possible court fights as the July 1 rules and contested interagency transfers move ahead.