The Senate’s version of President Trump’s “big, beautiful bill” passed Tuesday would make significant changes to student loan programs, worrying advocates that borrowers will face higher monthly payments.
The reconciliation bill revamps the types of student loan repayment plans available to borrowers; how much students will be able borrow from the federal government; and how student loan deferment works.
The massive package now heads back to the House. If passed it its current form, it would represent some of the biggest changes to the student loan system in years.
In the megabill’s current form, student loan repayment options would dwindle down to two in the next few years.
Multiple popular plans, such as the Biden administration’s SAVE option, would be phased out in favor of either a new Repayment Assistance Plan or a standard plan. Borrowers would have to choose one of those plans between July 2026 and July 2028.
