Senate passes big changes to student loans in reconciliation bill
by Lexi Lonas Cochran - 07/01/25 4:39 PM ET
The Senate’s version of President Trump’s “big, beautiful bill” passed Tuesday would make significant changes to student loan programs, worrying advocates that borrowers will face higher monthly payments.
The reconciliation bill revamps the types of student loan repayment plans available to borrowers; how much students will be able borrow from the federal government; and how student loan deferment works.
The massive package now heads back to the House. If passed it its current form, it would represent some of the biggest changes to the student loan system in years.
What changes would be made?
In the megabill’s current form, student loan repayment options would dwindle down to two in the next few years.
Multiple popular plans, such as the Biden administration’s SAVE option, would be phased out in favor of either a new Repayment Assistance Plan or a standard plan. Borrowers would have to choose one of those plans between July 2026 and July 2028.
The standard plan would give a borrower a loan with a life span depending on the amount borrowed, typically between 10 years and 25 years. The new Repayment Assistance Plan would require 30 years of payments before student loan forgiveness is allowed, up from 20 years to 25 years in previous options.
The legislation also eliminates the Graduate PLUS Program, which allows students going to graduate or professional school to cover the full cost of attendance. Instead, a cap of $100,000 will be put on lifetime loans for graduate students, and $200,000 for medical and law students.
Parent PLUS loans will also be capped at $65,000 and will not be eligible for repayment programs.
more
https://thehill.com/homenews/education/5379988-student-loans-senate-reconciliation-bill-trump-budget-gop-big-beautiful/
