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.

The bill, which is heading to President Donald Trump’s desk after the House of Representatives passed it on Thursday, makes major changes to student-loan repayment and the way loans are disbursed. It also expands the Pell Grant program to new types of providers and raises taxes on universities, among other related provisions.