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New federal student loan borrowing and payment rules take effect today. Find out if this impacts you
Federal student loan programs, including Grad PLUS and Parent PLUS loans, face new borrowing limits starting today under provisions of the One Big Beautiful Bill Act.
Supervising Producer
WASHINGTON —
New limits on federal student loans take effect today, changing how much students and parents can borrow for education.
The changes are part of last year’s One Big Beautiful Bill Act, President Donald Trump’s signature tax reform and spending law.
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Federal student loan borrowers, particularly those who are low-income, may need to find other ways to pay for school. This could lead to higher monthly payments as they turn to private loans and credit cards to cover the costs of attending school.
The Grad PLUS program, which previously allowed graduate students to borrow up to the full cost of their education without aggregate or lifetime limits, has been eliminated.
New limits on federal student loans for graduate and professional students begin today.
The Parent PLUS program, which enabled parents to borrow the full cost of attendance to support their dependent undergraduate children, now faces new borrowing limits.
The One Big Beautiful Bill Act lowered the amount students seeking graduate and professional degrees can borrow, as well as parents borrowing on behalf of undergraduate students.
The Trump administration said the changes aim to curb excessive borrowing, encourage institutions to evaluate their costs, and prevent borrowers from taking on debt they may struggle to repay.
These changes do not apply to students who enrolled in a graduate program before today and have already received loans for that program.
There are also new policies beginning today on how to pay back these loans. It mainly impacts people enrolled in the former SAVE repayment plan, which was a Biden-era income-based program that a court ruled illegal.
Starting today, loan servicers will get in touch with those borrowers, asking them to select a different way to pay their loans back. There are multiple options, including some new ones starting today, open to all borrowers. You can see them online at studentaid.gov.
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