Republican lawmakers would provide funding for Pell Grants but tighten eligibility requirements. The House version raises the bar for how "full-time" studies are defined -- students would have to earn 30 credits per year to be eligible, for instance, rather than the current 24.

The bill, if signed into law by President Donald Trump, would bring about major changes to the federal loan system.

Among numerous provisions aimed at reducing federal spending and increasing tax revenue, the bill lays out some major changes for federal student loan borrowers.