NewsNBC Bay Area — PoliticsJune 28, 2026United States
Major Changes to Federal Student Loan Programs Take Effect This Week
Starting this Wednesday, the Trump administration is implementing a sweeping overhaul of federal student loan programs, including new borrowing caps, higher interest rates, and the elimination of the Biden-era SAVE repayment plan. These changes consolidate repayment options and transfer oversight of the federal student aid program from the Education Department to the Treasury Department.
Read the full story at NBC Bay Area — PoliticsWhy It Matters
Millions of federal student loan borrowers will face new monthly payment calculations, stricter lifetime borrowing limits, and higher interest rates, which may increase the total cost of repayment for many households.
Key Facts
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Who's Mentioned
personLinda McMahon“Stated the administration is confident in the new programs.”personDonald Trump“Signed the policy package into law.”personJoe Biden“Initiated the SAVE repayment plan.”personAissa Canchola Bañez“Criticized the new $10 minimum payment for low-income earners.”personLori Correa“Reported a potential monthly payment increase from $150 to $713.”personNicholas Kent“Defended the new borrowing limits.”organizationTreasury Department“Will take over federal student aid program oversight.”personKyra Taylor“Warned of potential increases in loan defaults.”personBecca Craig“Noted an uptick in borrowers seeking help.”organizationEducation Department“Currently managing student aid, transitioning to Treasury.”organizationProtect Borrowers“Provided analysis on the new repayment plans.”organizationNational Consumer Law Center“Raised concerns about the impact on families.”