The Department of Education is beginning to roll out the student-loan repayment changes from Trump's spending bill.
They include changes to eligibility for income-based repayment plans and new borrowing limits.
The bill also creates two new income-driven repayment plans, which won't be implemented until July 1, 2026.
Student-loan borrowers will soon start seeing changes to the way they borrow and pay off their loans.
After President Donald Trump signed into law his tax and spending bill, which included major changes to student-loan repayment, the Department of Education announced it was beginning to implement some of the new provisions.
The department wrote in a July 18 letter that "many" of the changes in the spending law will be implemented on July 1, 2026, including the creation of two new income-driven repayment plans. However, the department said it is working with student-loan servicers to roll out a series of changes before then:#CryptoMarket4T
No longer requiring borrowers to have partial financial hardship to qualify for an income-based repayment plan;#GENIUSAct
Expanding options for borrowers who took out parent PLUS loans to enroll in an income-based repayment plan;#AltcoinSeasonLoading
Reducing the amount a student can borrow if they're enrolled in a program that is not full-time;#PowellVsTrump
And delaying the implementation of former President Joe Biden's borrower defense to repayment and closed school discharge regulations.#Write2Earn
If a borrower believes they were defrauded by the school they attended, they can apply for borrower defense, and if their claims are approved, their loans will be forgiven. Biden's administration attempted to make the process easier for borrowers to navigate, but it was blocked in court and never implemented.
