The Big Beautiful Bill carries serious risks for talent development—cutting financial aid and limiting loan access just as companies struggle to recruit skilled, diverse professionals.
Don’t let the name fool you. The so-called “Big Beautiful Bill” (BBB) may sound glamorous, but buried within its hundreds of pages are quiet policy shifts that threaten to dismantle key pathways to higher education—especially for low-income and first-generation students. For companies invested in building a diverse, competitive, and prepared workforce, this legislation is far from beautiful. In fact, it could cripple the very talent pipeline our economy depends on. From student loan restrictions to cuts in basic supports like food and healthcare, the ripple effects of this bill could stall social mobility and shrink the future talent pool. Here’s how:
- Graduate Loan Caps Could Shut Out Future Leaders: The BBB eliminates Grad PLUS funding and imposes new annual loan caps—$20,500 for master’s students and $50,000 for law and medical students. That’s far below the actual cost of attending many high-earning graduate programs. If you look at the top business schools in the U.S. the cost of tuition and fees alone annually exceeds $80,000, leaving many students to either find tens of thousands of dollars from personal funds or attempt to take out private student loans, which are more difficult to acquire and have higher interest rates. Students interested in medicine or law at schools with the highest earnings will have reduced returns on investment, shutting many low- and middle-income students out of these lucrative and rewarding fields.
- 15-Credit Rule for Full Pell Aid: While removed in the Senate version, this House-backed provision may resurface. It would require students to enroll in 15 credits (up from 12) to receive full Pell support. That’s a burden for working students who balance jobs with education. The result? More students dropping out, taking longer to graduate, underperforming academically or cutting their expenses for basic needs, such as food and housing.
- Higher Endowment Taxes Could Erode Financial Aid: The bill passed by the Senate increases the endowment tax from 1.5% to as much as 8% for colleges with large student bodies and endowments. These earnings are a primary source of financial aid at elite institutions with generous no-loan policies. A steeper tax could mean fewer grants and more debt for low- and middle-income students.
- Cuts to SNAP and Medicaid Could Trigger Tuition Hikes: Federal cuts to programs like food assistance (SNAP) and healthcare would likely shift costs to states—many of which may pull money from higher education to fill the gap. That would mean tuition hikes, fewer campus supports, and more financial strain for low-income students trying to complete degrees and enter the workforce. Also, beyond the cost increase, millions of college students rely on SNAP to eat since they are studying instead of working full-time so this is another possible implication.
These are just a few of the BBB’s provisions, but their message is loud and clear: the path to higher education—and by extension, to career opportunity—is becoming increasingly out of reach for low- and middle-income students. That’s not just an education problem. It’s a workforce crisis in the making.
America’s most dynamic companies rely on a steady pipeline of diverse, driven, and highly educated talent. If the cost of graduate and professional degrees continues to climb while support systems shrink, entire communities will be shut out—and employers will feel the consequences.
Business leaders must raise their voices—not just for equity, but for the sustainability and competitiveness of their own industries. Investing in accessible education isn’t charity. It’s long-term strategy. If the BBB moves becomes law, we risk trading our future leadership and innovation for short-term savings.
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