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Big changes arrive July 1 for student borrowers, including in loan repayments

On May 1, the Education Department finalized regulations implementing sweeping student loan changes effective July 1, stemming from a Republican tax and spending law that President Donald Trump signed last year.
New rules eliminate the Grad PLUS program for new borrowers and impose strict caps: graduate student loans limited to $20,500 annually, professional loans to $50,000, while current borrowers are grandfathered in for up to three years.
Launching July 1, two new repayment plans replace prior options: the Repayment Assistance Plan waives unpaid interest for on-time payments, while the Tiered Standard plan offers fixed monthly payments ranging from a 10-year to 25-year period.
Victoria Jackson, assistant director of higher education policy at EdTrust, warned of "drastic cuts to aid availability," saying the changes will likely force students to rely on costlier, riskier private loans instead.
The Treasury Department has begun a multiphase process to assume responsibility for the roughly $1.7 trillion federal student loan portfolio, marking the first step in the administration's broader effort to eliminate the Education Department.

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Big changes arrive July 1 for student borrowers, including in loan repayments

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…

1 day ago·Cherokee County, United States

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