US Edition8 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, introducing major changes to federal student loans across the U.S.
- The bill responds to longstanding issues of easily accessible loans, especially for graduate programs, and aims to rein in excessive borrowing and reduce taxpayer risk.
- Key changes include eliminating Grad PLUS loans from July 1, 2026, setting new annual and total borrowing limits for graduate and professional students, and limiting Parent PLUS borrowing and repayment options.
- Walter announced that the Workforce Pell Grant will become accessible beginning July 2026, while Tate cautioned that there could be an increase in loan defaults and bankruptcy cases in the future.
- These reforms reshape repayment plans, reduce relief options, and may increase students' financial burdens while prompting schools and families to adjust to new aid landscapes.
55 Articles
55 Articles
Howard students discover they owe thousands after school changes financial platform
Alissa Jones, a first-generation college student at Howard University, said she’s a couple classes away from the finish line — that was until she discovered she owed a huge amount of money to Howard. “Right now, it says I owe that 57,540-something, like I owe the whole thing,” Jones said. “[…] If you have any type of hold, you can...
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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