Story perspectives

Trump Shifts Student Aid to Treasury, Limits Repayment Options

6/30/2026

Center

Trump Transfers Aid Oversight

President Donald Trump’s administration is transferring federal student aid oversight from the Education Department to the Treasury.
The One Big Beautiful Bill Act, starting Wednesday, limits repayment plans to two options and caps graduate and parent loans.
Borrowers must choose a Standard plan or a $10-minimum assistance plan for incomes under $10,000.
Advocacy groups say the changes may increase payments, defaults, and steer students to private loans.

Right

Education Dept Rates

The Education Department will cut off federal Direct Loan eligibility for schools whose graduates repeatedly miss an earnings-return benchmark.
New borrowing limits and interest rates were announced for the upcoming academic year by the Education Department.
Graduate loans will carry a significantly 8.07% rate, undergraduates 6.52%, and parental loans 9.07%.
Autopay participants receive a 1% interest discount through June 2028, up from 0.25%.

History

Historical Context

In 2007 President George W. Bush signed the College Cost Reduction and Access Act, which expanded Direct Loans and created income-based repayment (Title II). A 2010 reform eliminated guaranteed loans, moving all federal borrowing to the Direct program. By June 2010 student loan debt topped $830 billion, surpassing credit-card balances. The Trump administration now shifts loan oversight to the Treasury, echoing the act’s push for simpler repayment.

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Trump Transfers Aid Oversight

President Donald Trump’s administration is transferring federal student aid oversight from the Education Department to the Treasury.
The One Big Beautiful Bill Act, starting Wednesday, limits repayment plans to two options and caps graduate and parent loans.
Borrowers must choose a Standard plan or a $10-minimum assistance plan for incomes under $10,000.
Advocacy groups say the changes may increase payments, defaults, and steer students to private loans.

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