NewsNBC Miami PoliticsJune 28, 2026United States
New Federal Student Loan Rules Take Effect This Week
The Trump administration is launching a major overhaul of the federal student loan system this week, replacing multiple repayment plans with two new options and imposing strict lifetime borrowing caps. The changes include the end of the Biden-era SAVE program, higher interest rates, and a transfer of student aid management from the Education Department to the Treasury Department.
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Millions of federal student loan borrowers will face new repayment terms, stricter borrowing limits, and potential monthly payment increases starting this week, with some existing borrowers required to transition to new plans within 90 days.
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Who's Mentioned
organizationTreasury Department“Will take over management of the federal student aid program.”organizationEducation Department“Currently managing student aid, which is being transferred to the Treasury.”personAissa Canchola Bañez“Criticized the new $10 minimum payment for low-income earners.”personJoe Biden“Initiated the SAVE repayment plan which is now being phased out.”personLinda McMahon“Stated the administration is confident the new programs will fix past mismanagem”organizationFederal Reserve Bank of New York“Reported on the rise in student loan defaults.”personNicholas Kent“Defended borrowing limits as a way to prevent excessive debt.”personKyra Taylor“Warned that the new plans may not be affordable for families.”personBecca Craig“Reported an uptick in borrowers seeking help due to fear of the new changes.”personLori Correa“Estimated her monthly payments could rise from $150 to $713 under the new rules.”personDonald Trump“Signed the policy package and initiated the student loan system overhaul.”