The Department of Education is rolling out changes to student-loan repayment in response to Trump's spending bill. Key changes include eliminating the partial financial hardship requirement for income-based repayment plans and expanding options for parent PLUS loan borrowers. Additionally, borrowing limits for programs not requiring full-time enrollment will be reduced. Two new income-driven repayment plans will be created but will not be effective until July 1, 2026. The implementation of Biden's borrower defense to repayment regulations has been delayed due to legal obstacles. These measures aim to simplify the repayment process for borrowers.
The Department of Education is implementing new student-loan repayment changes, including no longer requiring partial financial hardship to qualify for income-based repayment plans.
The bill creates two new income-driven repayment plans, which will not be implemented until July 1, 2026, while other changes will occur sooner.
New eligibility expands options for parent PLUS loan borrowers and reduces borrowing limits for non-full-time students.
This bill is designed to simplify the student loan repayment system and address the Pell Grant funding shortfall.
#student-loans #repayment-changes #income-driven-plans #pell-grant-funding #trump-administration-policies
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