H.R. 4674, College Affordability Act

The bill would

• Increase direct spending for federal student loan programs by $169.9 billion over the 2020-2029 period
• Increase direct spending for the Federal Pell Grant Program by $83.1 billion over the 2020-2029 period
• Increase direct spending for other higher education programs by $78.8 billion over the 2020-2029 period
• Amend and permanently reauthorize the discretionary portion of the Pell grant program, which would increase spending subject to appropriation by $85.4 billion over the 2020-2024 period

Estimated budgetary effects would primarily stem from

• Amending repayment options for federal student loan programs, eliminating origination fees, creating a subsidized loan program for graduate students, and expanding eligibility for Public Service Loan Forgiveness
• Increasing the maximum Pell grant and indexing the total to inflation
• Appropriating funds for America’s College Promise, a grant program that would require participating states to eliminate tuition and fees at public two-year institutions

Areas of significant uncertainty include

• Projecting future enrollment in postsecondary education and participation in the federal student aid programs
• Anticipating responses of students, postsecondary education institutions, and states to changes in the bill
• Projecting future incomes of borrowers in income-driven repayment and interest rates on student loans