NewsNBC Los Angeles (KNBC) – PoliticsJune 28, 2026United States
Major Changes to Federal Student Loan Programs Start This Week
The Trump administration is launching a significant overhaul of the federal student loan system this week, replacing multiple repayment options with two new plans and imposing strict lifetime borrowing limits. The changes include the end of the Biden-era SAVE repayment program, the transfer of student aid oversight to the Treasury Department, and new caps on how much graduate and professional students can borrow.
Read the full story at NBC Los Angeles (KNBC) – PoliticsWhy It Matters
Millions of federal student loan borrowers will face new monthly payment calculations, interest rate increases, and stricter borrowing caps that could limit access to graduate education or increase total debt costs.
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Who's Mentioned
personDonald Trump“Signed the policy package and administration overseeing the changes.”personLinda McMahon“Stated the administration is confident the new programs will fix past mismanagem”personLori Correa“A borrower who estimates her monthly payments will increase significantly under ”personAissa Canchola Bañez“Policy director at Protect Borrowers who criticized the new minimum payment requ”organizationEducation Department“Currently managing student aid, though oversight is shifting to the Treasury.”organizationTreasury Department“Set to take over federal student aid program management.”personBecca Craig“Financial planner at Focus Partners Wealth observing an increase in borrower anx”organizationProtect Borrowers“Organization monitoring the impact of the new loan policies.”organizationNational Consumer Law Center“Nonprofit group raising concerns about potential increases in loan defaults.”personKyra Taylor“Attorney at the National Consumer Law Center who expressed concern about the aff”personNicholas Kent“Defended borrowing limits as a way to prevent excessive debt.”