Starting in July 2026, significant changes to student-loan repayment, enacted in President Trump’s spending legislation, will begin. These changes involve replacing existing income-driven repayment plans with a standard repayment plan and a new Repayment Assistance Plan (RAP), which will offer income-based payments and forgiveness after 30 years. The legislation also introduces new borrowing caps for graduate and professional students, while eliminating the Grad PLUS program. Additionally, the SAVE plan will be phased out, potentially impacting millions of borrowers, and eligibility for income-based repayment plans is being expanded.
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Under President Trump’s “One Big Beautiful Bill,” the Department of Education is implementing changes to student loan reimbursement, with the “Repayment Assistance Plan” (RAP) replacing previous programs. A key factor in determining reimbursement is whether a degree is considered “professional,” leading to concern as several degrees, including nursing, are excluded from the list. This reclassification could significantly impact students pursuing these degrees, as they may receive less financial aid, potentially deterring them from entering high-demand professions and possibly exacerbating workforce shortages. Various stakeholders are criticizing the exclusion of these professions, arguing it contradicts the traditional understanding of “professional” and could have detrimental effects on public health and other critical sectors.
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Republican lawmakers are exploring drastic higher education cuts to fund Trump-era tax cuts. Proposed changes include taxing scholarships, eliminating income-driven student loan repayment plans like SAVE, and significantly raising taxes on university endowments. These measures, currently under consideration in House committees, are sparking widespread concern over their potential impact on college affordability and accessibility. Higher education advocates argue that these actions are ideologically driven rather than a response to a budget crisis.
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John Q. Hosedrinker