New limits on federal student loans take effect, impacting borrowing options for students and parents under provisions of the One Big Beautiful Bill Act, President Donald Trump’s tax reform and spending law.
Changes to Loan Programs
The changes affect the Grad PLUS and Parent PLUS loan programs. The Grad PLUS program previously allowed graduate students to borrow up to the full cost of their education without aggregate or lifetime limits. The act eliminates Grad PLUS loans and introduces new borrowing limits for graduate and professional students.
The Parent PLUS program, which allowed parents to borrow the full cost of attendance to support their dependent undergraduate children, now faces new restrictions.
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.
Original reporting: WPBF West Palm Beach — read the source article.
