Millions Of Student Loan Borrowers Brace
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Following the passage of President Trump's sweeping budget bill, here's some of the biggest changes to student loans.
The millions of Americans with student loans, who have already experienced whiplash in federal policy since the pandemic, must again brace for change.The "big, beautiful bill" that President Trump signed into law on July 4 overhauls the federal student loan system by reducing the number of repayment plan options down to two from seven and capping the amount individuals can borrow for higher education.
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Students logging into their student loan servicer accounts may not be able to see their progress in loan forgiveness payments after the Department of Education stalled payment counts.
The proposed changes arrive based on concerns that federal funds have been used to support organizations the administration views as acting outside the law.
Republican Sen. Bill Cassidy's Educational Choice for Children Act tax credit, a provision included within the megabill, provides a charitable donation incentive for individuals and businesses to fund scholarship awards for students to cover expenses related to K-12 public and private education starting in 2027.
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Plans unveiled this week could change how the student loan forgiveness program works for government employees.
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The Administration's efforts to reshape Public Service Loan Forgiveness could affect thousands of nonprofit workers.
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CNET on MSNStudent Loan Repayment Plans Will Last as Long as Most Mortgages. How Much the New Budget Bill Will Cost YouMonthly payments could drop, but most borrowers will pay more in interest over time. What to expect now that President Trump's "Big Beautiful Bill" is law.
Months later, the Education Department has unveiled drafted plans for the student loan forgiveness program that does just that. Proponents claim the proposed legislation would give one person unilateral power to remove organizations’ eligibility from the program as a form of political retaliation.