Key Student Loan Changes in Trump’s Bill Awaiting Signature

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2025-07-04 08:22:01

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The newly passed 'Beautiful Bill' introduces sweeping changes to federal student loans, set to take effect in July 2026. Graduate students will face annual borrowing limits of $20,500 with a $100,000 lifetime cap, while professional students are restricted to $50,000 yearly and $200,000 total. Parent PLUS loans will be sharply reduced to $20,000 annually per student, capped at $65,000 per child.

Existing repayment plans like SAVE, ICR, and PAYE will be eliminated, forcing borrowers to transition to Income-Based Repayment or the extended 30-year Repayment Assistance Plan. Private lenders, particularly Sallie Mae, stand to benefit from these structural shifts in education financing.

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