Education Department finalizes student loan limits and repayment plans under new tax law
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The Education Department has issued final regulations implementing changes from the Working Families Tax Cuts Act, signed into law on July 4, 2025. These rules update the Direct Loan Program to reflect new statutory borrowing caps and repayment structures.
Why it matters: This action simplifies how federal student loans work by reducing the number of repayment options and capping total borrowing amounts. It directly affects current graduate and professional students who may face new limits on their ability to borrow, as well as future borrowers navigating a simplified system. Taxpayers may see reduced long-term costs due to lower expected transfers from loan forgiveness or extended repayment periods.
Who it affects
- Graduate and professional students seeking federal loans
This summary is based on the final rule published by the Education Department in the Federal Register; readers should consult the original document for full legal text before relying on these details.
Agency: Education Department
Source: Federal Register — read the official document