Trump's student-loan repayment overhaul is coming but there's an exception to the new borrowing limits

"The changes include a new income-driven repayment plan, ending a program that allows graduate students to borrow the full cost of attendance, and introducing new borrowing caps for advanced degrees."

"Borrowers who qualify for the exception will retain it for either three academic years or the difference between the expected length of the program and the amount the borrower has already completed, whichever is shorter."

"The Trump administration has said the repayment overhaul is intended to simplify a complicated repayment system and curb excessive borrowing, for example with the new caps."

"Advocates and Democratic lawmakers have warned that the looming repayment changes could financially strain borrowers."

Significant changes to student loans will take effect on July 1, including new caps on borrowing and an income-driven repayment plan. Graduate students will no longer be able to borrow the full cost of attendance. Some provisions will be phased in by 2028, while others will be implemented immediately. Certain borrowers may qualify for exceptions to retain previous loan limits. The Trump administration aims to simplify repayment and reduce excessive borrowing, but concerns have been raised about potential financial strain on borrowers due to these changes.

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