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8 Major Student Loan Changes From Trump’s Budget Bill: Next Steps for Borrowers
UNITED STATES, JUL 22 – The reforms cut graduate and parent PLUS loan limits, overhaul repayment plans, and restrict deferment and forbearance, affecting millions of borrowers starting in 2026, the Education Department said.
- President Trump signed the 'One Big, Beautiful Bill' into law on July 4, 2025, overhauling federal student loan borrowing and repayment.
- The bill responds to concerns over high graduate borrowing, especially from large schools charging steep prices and easy access to graduate PLUS loans since 2006.
- Effective July 1, 2026, graduate students lose access to grad PLUS loans and face new borrowing caps of $20,500 yearly, with professional students capped at $50,000.
- The bill limits forbearance to nine months per 24-month period, removes most income-driven repayment options, and sets repayment under RAP or standard plans with a 30-year forgiveness timeline.
- These changes may increase defaults and financial stress for borrowers, push some toward private loans, and affect institutions and families needing to cover reduced Pell Grant recipients.
37 Articles
37 Articles
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What new student loan rules mean for borrowers
President Trump’s new tax and spending law brings sweeping changes to the federal student loan system, affecting both current and future borrowers. Nearly half a million borrowers could see their payments spike after the Department of Education scrapped most existing repayment plans. For a breakdown of what it all means, Geoff Bennett spoke with NPR education correspondent Cory Turner.
What the new student loan rules mean for current and future borrowers
President Trump’s new tax and spending law brings sweeping changes to the federal student loan system, affecting both current and future borrowers. Nearly half a million borrowers could see their payments spike after the Department of Education scrapped most existing repayment plans. For a breakdown of what it all means, Geoff Bennett spoke with NPR education correspondent Cory Turner.
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