US Edition
Student loan borrowers navigate new landscape as options dwindle under Trump
UNITED STATES, JUL 14 – The new law limits federal graduate loan borrowing to $100,000 and phases out the Grad PLUS program while extending loan forgiveness periods to 30 years, officials said.
- President Donald Trump signed the 'Big Beautiful Bill' into law on July 4, 2025, capping federal graduate loans and phasing out the Grad PLUS program.
- The legislation responds to concerns that unlimited federal loans encouraged tuition hikes and overenrollment in low-return graduate programs, while critics warn it reduces choices and raises payments.
- Starting July 2026, Grad PLUS loans will be capped at $20,500 annually and $100,000 total for master's degrees, with higher caps for career-path degrees, while current borrowers retain existing benefits.
- After a pandemic-related pause, the U.S. Department of Education resumed collections in early May 2025, affecting over five million borrowers who face wage garnishment, credit damage, and limited repayment options.
- Experts and advocates warn these policies will disproportionately harm low-income and LGBTQ+ borrowers, causing defaults, financial hardship, housing loss, and complex barriers to repayment.
15 Articles
15 Articles
Federal Student Loan Borrowers Will Have Only Two Repayment Options By 2028
By Thérèse Boudreaux Americans with outstanding federal student loans have three years to transition from their current repayment plan to one of two new options codified by President Donald Trump’s “big, beautiful bill.” By July 1, 2028, the permanent changes will apply to all federal aid borrowers who still hold balances, while prospective borrowers will...
New York Post
UpstractNew gov’t student-loan restrictions explained: Everything you need to know about the changes
President Trump's Big Beautiful Bill is massively rolling back federal student-loan programs in a nearly complete-180-degree turnaround from the Biden-era debt-forgiveness movement.
Times of San Diego
StocktoniaStudent debt collections resume, targeting borrowers least able to pay
This article was produced by Capital & Main. It is published here with permission. After a pandemic-related pause of more than five years, the U.S. Department of Education has resumed debt collections on student loans in default, affecting more than 5 million borrowers. When a federal student loan goes into default, the full balance becomes immediately due, and the government can garnish wages and seize federal payments to collect what’s owed. A…
Student loan borrowers navigate new landscape as options dwindle under ...
Options dwindling for student loan borrowers
(The Hill) - Student loan borrowers’ options are dwindling and time is not on their side as the Trump administration turns up the heat to get all borrowers back in repayment. The recently passed “big, beautiful bill" will take the bevy of choices away from borrowers by 2028, leaving only two options for repayment. Those on the Biden administration’s Saving on Valuable Education (SAVE) plan who have been in forbearance have even less time, with…
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