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June 28, 2026
Trump Administration Implements Major Overhaul of Student Loan System
- The Trump administration's changes will replace existing repayment plans with two new options, increasing monthly payments for many borrowers.
- Borrowing limits are introduced, capping federal loans to prevent excessive debt accumulation, affecting graduate and parent borrowers.
- Interest rates for new student loans will rise significantly, with undergraduate rates reaching 6.52% and graduate rates at 8.07%.
- Advocates warn that the changes may push low-income students toward private loans or deter them from pursuing higher education.
2 Sources
- Trump’s ‘big, beautiful bill’ is bringing a big set of student loan changesJun 28, 2026 at 4:02 PM · NBC
- What to know ahead of the July 1 student loan shakeupJun 29, 2026 at 9:00 AM · Axios