Overview

• The Education Department is drafting implementation guidelines for the Student Success and Taxpayer Savings Plan, with new rules set to apply to borrowers starting July 1, 2026.
• Federal graduate borrowing will be capped at $100,000 over a lifetime and professional program loans at $200,000, and the Grad PLUS program will be eliminated.
• Degree programs will need to meet alumni earnings benchmarks to qualify for federal loan eligibility, potentially cutting off support for low-earning fields.
• New borrowers will be limited to a standard 10–25-year repayment schedule or an income-based Repayment Assistance Plan with payments from 1% to 10% of income and forgiveness after 30 years.
• The American Medical Association and medical schools warn that these caps could deepen funding gaps for future doctors, worsen projected physician shortages and drive low-income students toward costlier private loans.