Nearly 4 million student loan borrowers in Texas will be impacted by changes to federal student loans starting July 1. The changes are part of the Trump administration’s One Big Beautiful Bill Act.
Loan Limits
The federal government will phase out the Graduate PLUS loan, which allowed eligible graduate or professional students to acquire federal loans for the full cost of their education. New annual loan limits and lifetime borrowing caps will be implemented.
Undergraduate students will have a lifetime maximum loan limit of $257,500. Students enrolled less than full time will see their loan disbursement adjusted or prorated to reflect their course load.
Degree Designations
The Department of Education will start enforcing a designation of professional degrees for borrowing purposes. Professional degrees will have higher borrowing caps of $50,000 annually and an aggregate lifetime cap of $200,000.
Other graduate degrees will have an annual borrowing cap of $20,000 and a lifetime cap of $100,000. Previous borrowing will affect the borrower’s lifetime cap, unless they qualify for an exemption.
Repayment Plans
The Trump Administration is replacing the Biden-era SAVE Plan with the Repayment Assistance Plan, which requires income-based monthly payments starting at 1% of the borrower’s adjusted gross income and going up to 10%.
For more information on the changes, visit the Federal Student Aid website.
Original reporting: San Antonio Report — read the source article.
