Student Loan Changes Under Trump‘s “Big, Stunning Bill” Spark Concern Among Students
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A recent survey indicates a majority of college students anticipate being negatively affected by the forthcoming changes to federal student loan programs under the “Big, Beautiful Bill” enacted by former president Donald Trump, set to take affect in July 2026. The legislation introduces new borrowing restrictions and considerably alters repayment options for federal student loan borrowers.
Survey Highlights Student Anxiety
The U.S. News & World Report surveyed nearly 1,200 college students, revealing that 61 percent believe they will personally experience the impact of the new law. An additional 20 percent do not foresee an impact, while 19 percent remain uncertain.
Did You Know?
The Biden governance previously implemented a new income-driven repayment plan in 2023, which the Trump bill seeks to modify.
Approximately 32 percent of students expressed concern about how the changes will affect existing repayment plans, such as income-driven repayment options. The new legislation will curtail these options, perhaps increasing monthly payments for some borrowers.
Impact on Borrowing Limits
The “Big, Beautiful Bill” establishes revised borrowing limits for graduate and professional students. Currently, students in programs like law or medicine can borrow up to $138,500 during their education, including undergraduate loans. Master’s students face borrowing restrictions ranging from $81,000 to $107,500,depending on their undergraduate degree.
Under the new rules, Master’s and doctoral programs will be capped at $20,500 annually, with a total limit of $100,000. Professional doctoral programs, including those in medicine and law, will have a higher limit of $50,000 per year, totaling $200,000. While these new limits are technically higher than some current restrictions, students requiring more significant funding will find their options limited.
| Student Type | Current Borrowing Limit | New Borrowing Limit (Annual) | New Borrowing Limit (Total) |
|---|---|---|---|
| Undergraduate (Included in Grad/Professional) | Varies | N/A | N/A |
| master’s | $81,000 – $107,500 | $20,500 | $100,000 |
| Professional Doctoral (Law, Medicine) | Up to $138,500 | $50,000 | $200,000 |
Grad Plus Loans Eliminated
A critically importent change introduced by the bill is the elimination of Grad plus loans. these loans currently allow master’s and doctoral students to borrow up to the total cost of attendance, offering a crucial funding source for many. While Grad Plus loans carry higher interest rates than direct loans, they provide fixed rates and access to income-driven repayment plans, benefits not always available with private loans.
Pro Tip:
Explore all federal loan options and understand the terms before considering private loans.
Student reactions and Concerns
The survey revealed widespread opposition to the changes, with 51 percent of students expressing disapproval. Even when considering individual provisions, support remained weak, with less than one in five students approving of the new borrowing caps or the elimination of certain income-driven repayment plans.
Many students are reevaluating their educational paths in light of the new legislation. Thirty-five percent are considering reducing their course load, 32 percent are contemplating a change of major, 31 percent are exploring completing their education abroad, and 26 percent are considering military service for financial support.First-generation students are especially likely to consider these adjustments, with 45 percent considering reducing their studies and 44 percent contemplating a change of institutions.
Students voiced their anxieties directly, with one stating, “I was thinking about law school,” and another lamenting, “I wanted to go to medical school, guess I won’t be able to now.” A third simply expressed, “Honestly, I’m cooked.”
Do you think these changes will disproportionately affect students from lower-income backgrounds? How might these new loan limits impact the future workforce?
The debate surrounding student loan debt and accessibility to higher education has been ongoing for decades. The rising cost of tuition, coupled with stagnant wages, has created a significant financial burden for many students. The Trump administration’s changes represent a shift in federal policy, moving away from broader debt relief measures and towards stricter borrowing requirements. This trend reflects a broader conservative approach to higher education funding, emphasizing individual responsibility and market-based solutions. Future developments will likely hinge on the political climate and the evolving economic landscape.
Frequently Asked Questions About the New Student Loan Bill
- What is the “Big, Beautiful Bill”? This legislation, enacted by former president Trump, introduces significant changes to federal student loan programs, including new borrowing limits and reduced repayment options.
- How will these changes affect graduate students? Graduate students will face lower annual and total borrowing limits, and the elimination of Grad Plus loans.
- What are the new borrowing limits? Master’s and doctoral programs are capped at $20,500 annually with a total limit of $100,000, while professional doctoral programs have a limit of $50,000 per year, totaling $200,000.
- What is a Grad Plus loan? Grad Plus loans allowed master’s and doctoral students to borrow up to the total cost of attendance, offering a crucial funding source.
- Will income-driven repayment plans still be available? The bill reduces the availability of income-driven repayment plans,potentially increasing monthly payments for some borrowers.
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