President Donald Trump’s newly enacted “Big Beautiful Bill” overhauls the federal student-loan system, pairing broad tax and spending cuts with the first lifetime cap on borrowing. Beginning 1 July 2026, borrowers will be limited to a combined $257,500 in federal loans, replacing the long-standing policy that allowed graduate and professional students, and parents, to borrow up to the full cost of attendance. The law imposes a $20,500 annual and $100,000 lifetime ceiling on unsubsidized graduate loans, while capping borrowing for professional degrees such as medicine and law at $50,000 a year and $200,000 overall. Parent PLUS loans are restricted to $20,000 per student each year, with a $65,000 lifetime limit, and the Grad PLUS program is eliminated entirely. Analysts say the tighter limits are likely to push students toward private lenders or prompt institutions to curb tuition growth. Repayment choices will also narrow. The popular SAVE, PAYE and ICR income-driven repayment plans will be phased out by 1 July 2028. Current borrowers must shift to either the existing Income-Based Repayment plan or a forthcoming Repayment Assistance Plan (RAP), expected to launch by mid-2026. Independent estimates suggest a borrower earning $60,000 could see monthly payments rise from roughly $250 under SAVE to about $520 under IBR, with RAP sitting in between. The Department of Education is already struggling to process repayment and forgiveness applications, raising concerns about backlogs as the new rules take effect. Policy experts advise borrowers to assess consolidation options, budget for higher payments and avoid taking new federal loans after mid-2026 unless necessary, warning that avenues for affordable repayment and loan discharge will continue to shrink.