NewsNBC Chicago – PoliticsJune 28, 2026United States
Major Changes to Federal Student Loan Programs Take Effect This Week
The Trump administration is launching a significant overhaul of the federal student loan system, replacing existing repayment plans with two new options and imposing strict lifetime borrowing limits. The changes, which take effect this Wednesday, also transfer the management of federal student aid from the Education Department to the Treasury Department.
Read the full story at NBC Chicago – PoliticsWhy It Matters
Millions of federal student loan borrowers will face new repayment requirements, potential monthly payment increases, and restricted access to future loan funding as the government shifts its focus toward debt collection and reduced federal spending.
Key Facts
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Who's Mentioned
organizationEducation Department“Currently managing student aid, though oversight is being transferred to the Tre”personDonald Trump“Signed the policy package and initiated the student loan system overhaul.”personAissa Canchola Bañez“Policy director at Protect Borrowers who criticized the new minimum payment requ”personLori Correa“A student borrower who estimates her monthly payments will increase significantl”organizationTreasury Department“New agency tasked with managing federal student aid and debt collection.”personLinda McMahon“Stated the administration's confidence in the new functioning programs.”organizationNational Consumer Law Center“Nonprofit group raising concerns about the affordability of the new plans.”personBecca Craig“Financial planner at Focus Partners Wealth observing an increase in borrower anx”personKyra Taylor“Attorney at the National Consumer Law Center concerned about potential defaults.”personNicholas Kent“Education Department official who defended the new borrowing limits.”organizationProtect Borrowers“Organization monitoring the impact of the new repayment plans.”