"The negotiations, which had been going on since October, focused on two areas: replacing existing income-driven repayment plans and instituting new borrowing caps on graduate and professional student loans. The negotiating committee reached a consensus on the law's changes, and the department will begin drafting a rule and publishing it for public comment early next year. The changes are scheduled to take effect in July 2026."
"Under the legislation, the Department of Education will eliminate the Grad PLUS program, which allowed graduate students to borrow up to the full cost of attendance for their programs. It also places new caps on graduate and professional borrowing: $20,500 a year for graduate students or $100,000 over a lifetime, and $50,000 for professional students or $200,000 over a lifetime."
Negotiations concluded on November 6, producing consensus on replacing existing income-driven repayment plans and imposing new graduate and professional borrowing caps. The Department of Education will eliminate the Grad PLUS program and set limits: $20,500 per year or $100,000 lifetime for graduate students, and $50,000 per year or $200,000 lifetime for professional students. Existing income-driven plans will be replaced by a standard repayment option and a Repayment Assistance Plan offering forgiveness after 30 years. The department will draft a rule, publish it for public comment early next year, and implement changes beginning July 2026.
Read at Business Insider
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