Hey girl, are you a student loan? Because I’d love to hold you for the rest of my life. 💘
The government isn’t just turning the student loan payment machine back on…it’s tightening the reins on how much it’s lending in the first place. 💸 Let’s take a look at some of the key changes and how they’ll impact future students. 👇
Here’s Five Fast Facts on student loans and private lending:
- 🛣️ Rules of the Road - In the Big Beautiful Bill, Trump included new rules around how much students can borrow for education. Over the last 60 years, the government has controlled most of the $1.7T student lending market. Right now, private lending makes up about 8% of current outstanding loans, but that could soon change in a big way.
- 🚧 At My Limit - The Trump administration is putting new borrowing limits in place for government-backed loans. Starting July 1, 2026, graduate student loans will be capped at $100K for master’s degrees and $200K for professional degrees (law, medicine, etc). This is a significant change from the current rule that allows grad students to borrow up to the full cost of attendance minus any aid received.
- ➕ Plus…There’s More - Parent PLUS loans will be capped at $20K per year and $65K total per child. Today’s rules let parents borrow up to the full cost of their child’s undergrad education. There’s also a Graduate PLUS loan program currently in place which will be completely eliminated under the new rules.
- 💰 Private Affair - Experts say as many 50% of all grad school borrowers may have to find private loans to foot the bill for their education. Supporters say the new rules take the financial burden of defaults off taxpayers and will force colleges to reduce the cost of attendance. Critics say these new rules could make it hard for middle-class families to afford college and block people from careers that require a graduate or professional level education.
- 👛 Cutting Corners - Looking for a way around the high cost of college? Consider starting at a community college first, then transfer to a 4-year program. If you qualify, a Pell Grant could also help cover costs. Trump’s new bill expanded the Pell Grant program to now include job-training programs.
🔥Bottom line: With college costs rising faster than your pandemic-era sourdough starter, many folks are rethinking college altogether. Pro tip: check out a career in the trades. Another big beautiful change coming down the pike: cuts to the SNAP program. If you or someone you know relies on SNAP to feed the family, make sure to check out this article for some helpful resources.
Do new laws around student loans have you rethinking college plans?
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