Explore the latest developments concerning Trump isn’t cutting.
Trump isn’t cutting Pell Grants, after all − but other changes could complicate financial aid for some students
Jennifer L. Steele does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
American University provides funding as a member of The Conversation US.
As an education researcher who has studied the economic returns of higher education, I know that college degrees remain cost-effective investments for most students.
But college tuition has risen at roughly twice the rate of inflation during the past two decades, and federal student debt climbed 500% to US$1.6 trillion during that same period.
The Biden administration sought to address this problem with plans that accelerated student loan forgiveness for lower-income borrowers with small balances, allowing debt cancellation after 10 years of repayment, instead of 20 or 25.
Trump is kicking off his major overhaul of student-loan repayment
On Monday, President Donald Trump's Department of Education is beginning negotiations with stakeholders on the president's plans to change student-loan repayment options and place new caps on borrowing.
The changes stem from Trump's "big beautiful" spending law. They're required to undergo the negotiated rulemaking process — which includes stakeholder feedback and periods of public comment — before moving forward with final implementation. It's typically a lengthy process, and the administration will have to move quickly to meet its previously defined goal of July 2026 as the deadline to implement many of the changes.
A draft version of the negotiations agenda said that the topics will center on new loan limits, income-driven repayment plans, and changes to deferment and forbearance periods.
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Grad v. Professional Programs a Key Issue for ED Panel
Professional programs get access to more federal dollars under a new law, raising the stakes for next week’s policy negotiation.
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Department officials and the advisory committee will need to figure how to determine which programs qualify as either graduate or professional.
Despite the possibility of a government shutdown next week, the Education Department is slated to begin the complicated endeavor of determining how to carry out the sweeping higher ed changes in Congress’s One Big Beautiful Bill Act.
The agenda for the weeklong meeting, which kicks off Monday, includes hammering out details about loan repayment plans and how to help struggling borrowers return to good standing. The key issue on the table, though, will likely be determining how best to differentiate between graduate and professional degree programs for future borrowers.
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