Major changes to federal student loans are taking effect today, as part of President Donald Trump’s One Big Beautiful Bill Act. The new rules will impact borrowers, particularly lower-income individuals, who may face higher monthly payments. New professional and graduate students will also have to contend with stricter loan limits.

Repayment Plans

The US Department of Education has introduced a new tiered standard repayment plan and a Repayment Assistance Plan (RAP). Under the standard plan, borrowers will have between 10 years and 25 years to repay their loans, depending on the amount borrowed. The RAP plan will require borrowers to pay between 1% and 10% of their income, with a minimum payment of $10 per month.

Some borrowers will pay more under RAP than under current income-driven repayment options, due to the way the loan repayment programs are structured. However, these new repayment plan options only apply to students taking out new loans, at least for the next two years.

Loan Limits

Graduate school students will no longer be able to borrow up to the cost of attendance for their programs. The new limits will be $20,500 annually and $100,000 over a lifetime. Professional and graduate students will also face stricter loan limits, with a cap of $50,000 annually and $200,000 over their lifetime.

A popular loan that parents use to help their undergraduate students, the Parent PLUS loan, will be limited to $20,000 annually and $65,000 total over the course of a student’s studies.

Original reporting: El Paso News (HLL/CB) — read the source article.