What to know about the major student loan changes coming July 1
Summary
Starting July 1, major changes will take effect in the student loan system due to the One Big Beautiful Bill Act signed by President Trump. These changes include new limits on how much students and parents can borrow and fewer repayment options for loan borrowers.Key Facts
- The One Big Beautiful Bill Act was signed into law by President Trump last year and is reshaping student loans.
- Student loan debt in the U.S. is nearly $1.9 trillion.
- Parents using Parent PLUS loans will be limited to borrowing $20,000 per year and $65,000 total for one student, down from borrowing up to the total cost of attendance.
- Graduate students will be capped at borrowing $20,500 per year and $100,000 total.
- Students in some professional programs (like pharmacy, law, medicine) will have limits of $50,000 per year and $200,000 total.
- New borrowers will no longer have access to Graduate PLUS loans, which previously allowed borrowing the full cost of attendance.
- Most nursing students will not be affected by the new borrowing limits.
- A lifetime borrowing cap of $257,500 will apply to new federal student loans starting July 1.
- Borrowers currently in the SAVE repayment plan should contact their loan servicers as the program changes.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.