New Federal Student Loan Overhaul to Bring Stricter Borrowing Limits and Plan Changes
The overhaul eliminates Grad PLUS for new borrowers and creates two repayment plans, with 80,000 public comments reviewed before finalization.
- Starting July 1, the Education Department will implement new regulations overhauling the federal student loan system, introducing strict borrowing caps and replacing existing repayment options with two new plans.
- President Donald Trump signed the GOP's "big, beautiful" tax and spending legislation last year, mandating these sweeping changes to federal student lending and program availability.
- The Repayment Assistance Plan and Tiered Standard plan will replace previous options, with graduate loans capped at $20,500 annually and professional degrees at $50,000 annually.
- Victoria Jackson of EdTrust warns the "drastic cuts to aid availability" will make education more expensive, potentially forcing students toward riskier private loans or discouraging enrollment.
- The Treasury Department will assume responsibility for collecting defaulted student loan debt, the first phase in transferring the Education Department's roughly $1.7 trillion federal student loan portfolio.
23 Articles
23 Articles
New federal student loan overhaul to bring stricter borrowing limits and plan changes
WASHINGTON — The federal student loan system is poised for a significant transformation starting July 1, following regulations finalized by the U.S. Department of Education. Critics of the changes suggest the new rules will make higher education more expensive and…
Big changes arrive July 1 for student borrowers, including in loan repayments • Maine Morning Star
The U.S. Department of Education on Feb. 20, 2026. (Photo by Shauneen Miranda/States Newsroom)WASHINGTON — The federal student loan system is set to see a dramatic overhaul beginning this summer, and critics warn it likely will make loans more expensive and difficult to obtain for borrowers — driving them to private lenders or altering their plans for higher education. Among the major changes are new loan limits for graduate and professional stu…
Pennsylvania Capital-Star
Big changes arrive July 1 for student borrowers, including in loan repayments
The U.S. Department of Education on Feb. 20, 2026. (Photo by Shauneen Miranda/States Newsroom)WASHINGTON — The federal student loan system is set to see a dramatic overhaul beginning this summer, and critics warn it likely will make loans more expensive and difficult to obtain for borrowers — driving them to private lenders or altering their plans for higher education. Among the major changes are new loan limits for graduate and professional stu…
Law Students Rush to Secure Federal Loans Early - JDJournal Blog
A growing number of U.S. law students are accelerating their enrollment plans ahead of major federal student loan changes set to take effect this summer. As the July 1 deadline approaches, law schools across the country are expanding summer-start programs to help students lock in existing federal loan protections before new borrowing caps begin. The shift is already reshaping law school admissions strategies, student financing decisions, and bro…
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