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New Federal Loan Borrowing Limits
Comparison of lifetime borrowing caps under the new policy.
Primary Sources
Student loan debt crackdown: why repayment rules are getting stricter
Nearly a quarter (25%) of borrowers are in default, and less than 40% are making satisfactory payments. Student debt is now the largest asset on the government's balance sheet, surpassing even national credit card or auto loan debt, according to financial analysts.
2026 Changes to Student Loans You Need to Know | Kiplinger
Student wearing a calculator graduation cap. Student loan, finance and educatiom concept. Vector illustration.(Image credit: GETTY IMAGES)Federal student loans are undergoing an overhaul. Starting July 1, new students who take out a loan will have fewer repayment-plan options, and some families who already have loans will be forced to select a different repayment plan.Parents who take out federal loans to help their children pay for college may be subject to new borrowing limits. And for those starting a new graduate or professional degree, Graduate PLUS loans will no longer be available. The One Big Beautiful Bill Act (OBBBA), signed into law last year, ushered in these changes.If you or your child is already paying off student loans, or if your family is planning to borrow for college in the future, there's a good chance some of these updates will affect you. Here, we offer details on what you should know, as well as strategies for families to make the best choices. From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues CLICK FOR FREE ISSUE Sign up for Kiplinger’s Free Newsletters Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of expert advice - straight to your e-mail. The new student loan repayment plansThe OBBBA narrows to two the options for students taking out a loan on or after July 1. One is an income-based plan known as RAP (Repayment Assistance Plan). Under this new plan, payments range from 1% to 10% of the borrower's adjusted gross income, with a minimum payment of $10 a month. Lower-income borrowers pay a smaller percentage; the maximum 10% applies to those with an AGI of $100,000 or higher, and there's no dollar limit on the monthly payment. RAP deducts $50 from the monthly payment for each of the borrower's dependents. After 30 years, any remaining balance is forgiven.The other option for new borrowers is the Tiered Standard Plan, with fixed payments over the course of 10, 15, 20 or 25 years, depending on your federal loan balances. If your loan balances add up to less than $25,000, the repayment term is 10 years. For loans of $100,000 or more, the term is 25 years. Borrowers may prefer this option if they want fixed, predictable payments, if they would like to pay off their loan more quickly than they mig...
The #Trump Administration is seeking to politicize and destabilize ...
TRUMP ADMINISTRATION REVERSES COURSE - CANCELS STUDENT DEBT FOR MILLIONS The White House just agreed to restart student loan forgiveness for over 2.5 million ...
Major federal student loan changes take effect July 1 - MSN
Starting July 1, sweeping federal student loan reforms under the One Big Beautiful Bill Act will limit repayment options, impose new borrowing caps, and end Graduate PLUS loans. New borrowers will ...
