New policies set borrowing limits and revise repayment options under federal law.
The U.S. Department of Education has released a final rule outlining changes to federal student loan programs, including updated borrowing limits, revised repayment options, and the discontinuation of certain graduate‑level loan categories. The rule also establishes a new income‑driven repayment framework and permits institutions to set program‑specific borrowing caps. Most provisions are scheduled to take effect beginning in July 2026, with additional elements phased in through 2028.
“President Trump’s Working Families Tax Cuts Act addresses longstanding challenges in higher education and federal student lending, including exorbitant tuition costs, unchecked borrowing, and a confusing maze of repayment options that too often leave borrowers with higher balances despite making payments. This final rule will help ensure students can access higher education without racking up excessive loan debt, offer repayment options that better serve borrowers, and force institutions to reduce costs,” said Under Secretary of Education Nicholas Kent.
The department stated that the changes are intended to address rising education costs and long‑term repayment challenges within the federal loan system, which currently totals an estimated $1.7 trillion.
As the Lord Leads, Pray with Us…
- For Under Secretary Kent as he oversees the implementation of updated federal student lending policies.
- For U.S. education officials as they seek to inform students and parents about educational pathways and financial commitments.
- For colleges and universities to structure programs in ways that support students’ long‑term stability and realistic outcomes.
Sources: Department of Education
