Changes to federal student loans are taking effect, impacting millions of borrowers. The changes, part of President Donald Trump’s ‘Big Beautiful Bill,’ mean the end of some payment plans and new limits for graduate loans.
End of the SAVE Plan
The SAVE plan, a repayment option with lenient terms, has been struck down by the U.S. Court of Appeals for the 8th Circuit. Approximately 7.5 million borrowers are enrolled in the SAVE plan and will be notified to enroll in another income-driven repayment plan within 90 days.
Changes to Graduate School Loan Caps
Trump’s ‘Big Beautiful Bill’ has changed the amounts graduate students can borrow for various programs. Programs designated as professional degrees face federal student loan caps of $200,000, while other graduate programs are capped at $100,000.
Changes to Parent PLUS Loans
Parent PLUS Loans have had fewer repayment options, and now the options are being reduced further. New limits on Parent PLUS loans cap them at $20,000 per student and $65,000 per family.
Enrolling in Income-Driven Repayment Plans
Current borrowers can apply for income-driven plans, such as the Income-Based Repayment Plan and the Pay as You Earn plan. Students who take loans on or after July will only be able to enroll in one income-driven repayment plan: the Repayment Assistance Plan.
Original reporting: Texarkana Gazette — read the source article.
