Trump's Student-Loan Overhaul Ends Full-Cost Borrowing for Graduate Students
HF
Hayden Fairfax
student loan forgiveness ruling · Apr 16, 2026
Source: DojiDoji Data Terminal
Graduate students can no longer borrow the full cost of attendance for their advanced degrees. This shift is part of a new federal student-loan repayment and borrowing overhaul taking effect July 1 under President Donald Trump's spending legislation.
Borrowers who were enrolled in a program as of June 30, 2026, and received at least one direct federal loan or had a parent receive a parent PLUS loan before July 1, 2026, may keep the prior borrowing limits. This exception applies only if the borrower remains at the same institution and pursuing the same credential. The prior limits are retained for three academic years or the remaining expected length of the program, whichever is shorter.
The broader overhaul introduces new borrowing caps for advanced degrees and a new income-driven repayment plan. While some provisions are phased in by 2028, the borrowing caps begin this summer.
The administration also eliminated the SAVE repayment plan. Starting in July, 7 million borrowers enrolled in SAVE will receive details on a 90-day window to switch to a new repayment plan, with some facing monthly payments that rise by hundreds of dollars.