US student debt crisis prompts Education Secretary McMahon to propose reforms

Education Secretary Linda McMahon told the House Education and Workforce Committee that 43 million Americans are carrying about $1.7 trillion in student loan debt. She defended a package of reforms that would tighten federal loan limits for graduate programs such as nursing, teaching and social work, arguing that unlimited federal borrowing has driven tuition hikes.

Republican lawmakers praised the measures as restoring accountability, while Democrats warned the limits could push low‑income students toward costly private loans and worsen workforce shortages. McMahon also highlighted administrative changes: a faster FAFSA process that now takes about 35 minutes, stronger identity‑verification tools, and the blocking of more than $1 billion in fraudulent aid, including AI‑generated fake applications. Some universities have already begun lowering graduate‑program fees in response. The hearing comes as the Biden administration’s broader loan‑forgiveness efforts face legal challenges and as international students, including many from India, watch the policy shifts closely.