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Trump's Education Overhaul: 42 Million Borrowers Face Changes

11/8/2025

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Summary

Story summary

The U.S. Department of Education announced changes under U.S. President Donald Trump’s One Big Beautiful Bill Act (OBBBA) that eliminate the Grad PLUS program and cap Parent PLUS loans.
The plan creates a new Repayment Assistance Plan (RAP) set to begin in July 2026 to curb unsustainable borrowing and rising tuition costs.
The reforms could affect more than 42 million borrowers and tighten Public Service Loan Forgiveness eligibility, prompting lawsuits from cities and labor unions.

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Story summary

The U.S. Department of Education announced changes under U.S. President Donald Trump’s One Big Beautiful Bill Act (OBBBA) that eliminate the Grad PLUS program and cap Parent PLUS loans.
The plan creates a new Repayment Assistance Plan (RAP) set to begin in July 2026 to curb unsustainable borrowing and rising tuition costs.
The reforms could affect more than 42 million borrowers and tighten Public Service Loan Forgiveness eligibility, prompting lawsuits from cities and labor unions.