Caps on federal student loans

Under the proposal, undergraduate students would face a borrowing cap of $50,000 in federal student loans starting July 1, 2026, while graduate students couldn't take out more than $100,000.

Current limits vary by factors including student status and year of schooling, but for many people, the caps will mean they can borrow less.

Those limits "will shift some borrowing to private student loans," said higher education expert Mark Kantrowitz.

That's a concern for Kantrowitz and other consumer advocates, who point out that private student loans come with far fewer borrower protections than federal student loans.

Fewer repayment plans, hardship protections

The GOP proposal would reduce the number of existing income-driven repayment plans for new federal student loan borrowers to just one. IDR plans aim to make monthly payments affordable for borrowers by capping the bills at a portion of their discretionary income.

More than 12 million people were enrolled in IDR plans as of September 2024, and all of that debt will be forgiven early, according to Kantrowitz.

It would also eliminate the unemployment deferment and economic hardship deferment for federal student loan borrowers, on debt taken out during or after July 2025.

https://www.cnbc.com/amp/2025/04/29/student-loan-overhaul-by-gop-to-slash-repayment-plans-limit-borrowing.html

(http://www.autoadmit.com/thread.php?thread_id=5718362&forum_id=2#48891927)

This way nobody’s borrowing an arm and a leg and all schools will cave and increase enrollment to make the numbers work because nonprofit status is that valuable to them.

There really is an easy fix.

(http://www.autoadmit.com/thread.php?thread_id=5718362&forum_id=2#48891990)