What borrowers should know about student loan changes in the One Big Beautiful Bill
Summary
President Trump signed the One Big Beautiful Bill Act, which makes major changes to the federal student loan system. The changes include stricter borrowing limits and fewer repayment options, affecting many of the 43 million student loan borrowers in the United States. The bill also ends the existing SAVE repayment plan and introduces new plans that won't be available for another year.Key Facts
- President Trump approved the One Big Beautiful Bill Act on July 4.
- The act overhauls the federal student loan system in the U.S.
- Nearly 43 million student loan borrowers might be affected.
- Borrowing limits for graduate students and parents will be stricter, while undergraduates will see no change.
- The Biden-era Saving on a Valuable Education (SAVE) repayment plan will end.
- New repayment plans will replace SAVE, but they won’t be ready for implementation until next year.
- Borrowers under SAVE won't be required to make payments yet, but interest will start accruing.
- The Education Department is preparing for a potential rush of borrowers changing plans due to these changes.
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