Bottom line: This bill rewrites the student loan system--and not in your favor.
We all--except the upper income folks--will be getting hit one way or another by Trump and his pals.
Christopher Webb cwebbonline
ATTENTION: Current + Future Student Loan Borrowers (and Parents)
Here’s how the “Big Beautiful Bill” could wreck your future:
🚨 STUDENT LOAN CHANGES UNDER THE BILL (proposed)
📌 SAVE Plan Terminated
No more SAVE, ICR, PAYE, or REPAYE for new loans after July 1, 2026.
📌 Changed Repayment Options
• Standard Plan: Fixed payments over 10–25 years
• Repayment Assistance Plan: Income-driven, 30-year forgiveness cap, $10 minimum
📌 Loan Types Eliminated
• No more Subsidized Loans
• Grad PLUS eliminated
• Parent PLUS capped at $50K
📌 Lifetime Borrowing Caps
• $50K for undergrad
• $100K for grad
• $150K for professional programs
📌 Public Service Loan Forgiveness (PSLF)
• Kept, but residency time for med/dental grads no longer counts (post-June 30, 2025)
📌 Deferments & Forbearance Gutted
• Ends deferments for hardship/unemployment (new loans after July 1, 2025)
• Forbearance limited to 9 months
📌 College Accountability Clause
• Schools must repay a portion of defaulted loans to discourage tuition gouging (a good thing imo)
📌 Loan Rehab Options
• Two chances to rehabilitate defaulted loans (includes Perkins)
📌 Consumer Protections Slashed
• Limits new rules for borrower defense—hurts students defrauded by shady schools
Bottom line: This bill rewrites the student loan system—and not in your favor.
9:33 AM · May 21, 2025
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