US Education Department finalises rule to lower college costs and simplify loan repayment
Updated
Updated · US Department of Education · Apr 30
US Education Department finalises rule to lower college costs and simplify loan repayment
10 articles · Updated · US Department of Education · Apr 30
Most provisions take effect on 1 July 2026, with later changes in 2027 and 2028, after more than 80,000 public comments on rules implementing President Trump's 2025 law.
The rule ends Grad PLUS, sets graduate and professional borrowing limits, lets institutions impose programme-specific caps, and creates a Tiered Standard plan and Repayment Assistance Plan that eliminates negative amortisation.
The department says the package will save taxpayers $409bn and reduce student debt by $224bn, amid federal student debt near $1.7tn, with under 40% of borrowers in active repayment.
Will new federal loan caps make graduate degrees an unaffordable luxury?
Will universities actually cut tuition, or just push students toward riskier private loans?