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Significant Changes to Federal Student Loans Begin This Week in El Paso

KVIA•Wednesday, July 1, 2026 at 7:59 AM•CNN Newsource

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Starting Wednesday, major changes to federal student loans will take effect due to the 'One Big Beautiful Bill' signed by President Trump. These reforms will impose higher monthly payments for low-income borrowers and stricter loan limits for new graduate and professional students. Approximately 43 million borrowers, totaling $1.7 trillion in loans, will be impacted, especially those seeking financial aid for education. Critics warn that these changes may hinder access to education funding and increase repayment burdens. Current borrowers will not see immediate changes, but new repayment plans will be required by July 2028, and parents of new students will face new borrowing limits.

Key Details: • New repayment plans take effect on Wednesday, impacting new borrowers. • Graduate students will face stricter loan limits of $20,500 annually. • Parents can borrow up to $20,000 annually under the new Parent PLUS limits. • Borrowers who enroll in automatic payments by September 30 will receive a 1% interest rate reduction.

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