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Trump's New Bill Shakes Up Student Loan Repayment

7/28/2025

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Summary

Story summary

President Trump's newly signed "One Big Beautiful Bill" transforms federal student loan repayment, limiting new borrowers to just two options starting July 1, 2026. As existing plans, especially income-driven ones, face elimination by 2028, many borrowers—especially those from low-income backgrounds—are left grappling with uncertainty and potential financial hardship.

History

Historical Context

The Higher Education Act of 1965 transformed access to federal student loans, enabling millions to pursue higher education. By 2020, around 44 million Americans faced over $1.7 trillion in student loan debt, reflecting ongoing financial challenges. Recent reforms under President Trump's "One Big Beautiful Bill" aim to simplify repayment but may further strain low-income students, prompting a reevaluation of federal education funding policies.

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Story summary

President Trump's newly signed "One Big Beautiful Bill" transforms federal student loan repayment, limiting new borrowers to just two options starting July 1, 2026. As existing plans, especially income-driven ones, face elimination by 2028, many borrowers—especially those from low-income backgrounds—are left grappling with uncertainty and potential financial hardship.

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