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Reconciliation & You

2025 Budget Reconciliation Act

H.R.1, the 2025 Budget Reconciliation Act, introduces broad changes to the nation’s budget, including several changes that will directly impact the administration of federal financial aid. For financial aid administrators, the focus will be on those provisions that will most directly influence outcomes:

For students and parents, including:

  • Changes to Federal Funding: Colleges that rely heavily on federal funding should anticipate shifts in resource allocation, potentially affecting operating budgets and administrative staffing.
  • Student Aid Modifications: Changes to Pell Grants, loan limits, or eligibility criteria could influence enrollment, retention, and the financial well-being of students. Colleges may see changes in the composition of incoming classes and will need to adapt accordingly.
  • Changes to the Federal Student Loan Program: New borrowing limits and changes to repayment structure could cause uncertainty among students, families, and graduates. Colleges should be prepared to provide clear guidance about how these changes may affect their financial obligations, as well as adjust their counseling and support services to match the new federal policies.

For colleges, key areas of concern may include:

  • Financial Planning: Colleges will need to adjust their financial planning and advising services to accommodate the new loan limits and repayment options. This may require additional resources and training for financial aid staff.
  • Student Enrollment: The elimination of the Graduate PLUS Loan program and the new limits on Parent PLUS Loans may impact student enrollment, particularly for graduate and professional programs. Colleges may need to explore alternative funding options to support students.
  • Debt Management: With the introduction of institutionally determined loan limits, colleges will have greater responsibility in managing student debt. This will require careful consideration of program-level loan limits and the potential impact on student access and success.
  • Communication: Clear and timely communication with students and parents about the changes to federal student aid programs will be crucial. Colleges should develop comprehensive communication strategies to ensure that all stakeholders are informed and prepared for the upcoming changes.

We’re here to support you

The evolving landscape resulting from H.R.1 will require patience, flexibility, and resiliency from all involved.  Iron Bridge Resources is here to help you navigate the coming changes with a comprehensive suite of services that can be fully customized to fit your needs.

  • Interim Staffing – For colleges, strained budgets could mean new full-time hires are put on hold. An Iron Bridge consultant can backstop your open position for just the time you need at a fraction of the cost of a new hire. Our consultants support day-to-day operations, front-and back-end tasks, assist with project work, provide customer service, and more. Any job level. Remote and onsite placement available.
  • Tax Training – Interactive workshops to keep financial aid professionals up to speed on changes in the U.S. tax code that impact financial aid. Training is available in-person or online.
  • Enrollment & Retention Services – Whether your institution is experiencing a dip in first-year enrollment, struggling with yield, or simply unsure how to align internal efforts, Iron Bridge Resources diagnostic services provide actionable insight to help you move forward with confidence.

Contact us at (508) 459-9880 to learn more. 

H.R.1 Resource List:

For More Information, Please Contact:

Shane Pruitt

Senior Consultant, Enrollment and Retention
Email Shane
706-804-2724