1. New Borrowing Caps
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Undergraduates: max $50,000 total federal loan (up from ~$31k) timesofindia.indiatimes.com+2nbcchicago.com+2linkedin.com+2.
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Graduate/Professional students: capped at $100k–150k depending on program timesofindia.indiatimes.com.
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Aggregate cap across all federal loans: $200,000 per borrower washingtonpost.com+15linkedin.com+15timesofindia.indiatimes.com+15.
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Parent PLUS: now only available after student exhausts unsubsidized loans; total cap ~$50k congress.gov+2linkedin.com+2edvisors.com+2.
2. Elimination of Subsidized & PLUS Loans
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Subsidized undergrad loans and Grad PLUS are canceled starting July 1,?2026 (with a 3-year “grandfathering” for continuing students) bnn.org+1forbes.com+1.
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This removes interest-free periods and increases reliance on unsubsidized or private loans.
3. Simplified Repayment Plans
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All current income-driven plans (e.g. PAYE, SAVE) are eliminated for new loans after July 1,?2026 houstonchronicle.com+15linkedin.com+15timesofindia.indiatimes.com+15.
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Borrowers limited to:
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A Standard plan (fixed 10–25 years depending on debt); or
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A new Repayment Assistance Plan (RAP): income?based, 1–10% of income, includes interest forgiveness on unpaid interest, and forgiveness after up to 30 years of payments edvisors.com+2linkedin.com+2reddit.com+2bestcolleges.com+6forbes.com+6edvisors.com+6reddit.com+4nbcchicago.com+4cnbc.com+4.
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4. Loss of Deferment & Forbearance Options
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New loans from July 1,?2025 onward lose ability to pause payments during unemployment or economic hardship nbcchicago.com+1cnbc.com+1.
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Forbearance capped at 9 months within any 24-month period linkedin.com+2nbcchicago.com+2timesofindia.indiatimes.com+2.
5. Pell Grant Restrictions
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Full Pell eligibility tied to 15 credits/semester (up from 12); part-time (<?8 credits) students lose Pell entirely edvisors.com+3houstonchronicle.com+3linkedin.com+3.
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Aid calculation shifts from actual cost to a national median cost model—reducing support for those at pricier schools bestcolleges.com+6linkedin.com+6timesofindia.indiatimes.com+6.
6. Restrictions on PSLF
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The Treasury may revoke nonprofit tax-exempt status, which would disqualify employees from PSLF eligibility linkedin.com+12bestcolleges.com+12bnn.org+
