Federal Student Loan Program Undergoes Major Changes, Impacting Borrowing and Repayment Options

New federal student loan rules, stemming from a Department of Education final rule on April 30, 2026, and tied to the Trump's Working Families Tax Cuts Act, are significantly altering repayment options, graduate borrowing, Parent PLUS loans, and overall loan limits, effective July 1, 2026. A federal judge has also temporarily blocked parts of these new loan limits, particularly those affecting professional degree programs. These changes are reshaping the college money conversation for families and students.