Overview

• The legislation eliminates the Grad PLUS program and limits master’s borrowing to $20,500 per year ($100,000 lifetime) and professional programs to $50,000 per year ($200,000 lifetime).
• Multiple income-driven plans are replaced by a standard 10–25 year schedule and a Repayment Assistance Program where payments are 1–10% of income with forgiveness after 30 years.
• Economic hardship and unemployment deferments are removed and forbearance is capped at nine months within any 24-month period.
• Pell Grants become the last aid awarded, with full or partial scholarships reducing or eliminating eligibility for low-income students.
• The law ties federal loan eligibility to program-level graduate earnings outcomes, prompting critics to warn of deterred applicants even as officials tout simplification and budget savings.