Trump’s Student Loan Cap Sparks Nationwide Concern

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A recent national survey reveals that most U.S. college students expect to be affected by new federal student loan policies set to take effect in July 2026. The legislation, championed by former President Donald Trump and described as his “big, beautiful bill,” introduces borrowing caps and removes several repayment options, prompting widespread concern among current and prospective students.

Survey Results Highlight Growing Uncertainty

According to the survey of nearly 1,200 college students conducted by U.S. News & World Report, 61% of respondents believe the law will directly impact them, while 20% said they would not be affected, and 19% were unsure. About 32% anticipate negative effects from the elimination of the SAVE income-driven repayment plan, which was introduced in 2023 under former President Joe Biden.

Awareness of the details remains low: 20% of students say they fully understand the policy, while 39% understand it somewhat, 19% not at all, and 22% remain uncertain about its implications.

Student Reactions and Changing Plans

The bill is facing notable opposition, with 51% of students disapproving of all the loan-related changes. Individual provisions, such as borrowing limits and the removal of Grad Plus loans, also lack broad support. As a result, many students are reconsidering their academic plans:

• 35% may scale back their studies
  
• 32% are thinking of switching degrees
  
• 31% are considering studying abroad
  
• 26% may enlist in the military for financial support
  

First-generation students are particularly affected, with 45% considering reducing their education and 44% considering changing their majors. These shifts coincide with concerns over campus immigration enforcement policies affecting first-generation immigrant students.

One law student shared: “I’m thinking about not finishing law school.” Another student aspiring to attend medical school said, “Honestly, I’m cooked.”

Graduate Students Face Largest Impact

Currently, law and medical students can borrow up to approximately $138,500, including undergraduate debt. Under the new law, borrowing for master’s and academic doctoral degrees will be capped at $20,500 per year and $100,000 total, while professional doctoral programs such as medicine and law will allow up to $50,000 per year and $200,000 total.

Although these limits appear higher for some programs, the elimination of Grad Plus loans previously covered the full cost of attendance with fixed rates and repayment flexibility. Means fewer options for those requiring additional funds.