US Senate Advances Major Student Loan Caps Repayment Reform

Significant changes to student loan programs are advancing in Congress under President Donald Trump's administration, with the Senate proposing legislation as part of the "One Big Beautiful Bill Act" that would reshape federal student loan borrowing and repayment. The Senate bill aims to reduce the number of income-driven repayment plans to two, eliminating current options including the SAVE program, and sets new caps on borrowing, particularly for graduate students and parents. These caps are lower than those proposed by the House and may limit loans to amounts below the actual cost of attendance for many professional programs, such as veterinary and medical schools. The legislation also proposes changes to Pell Grants eligibility and seeks to streamline financial aid, though critics warn it could make college less affordable and push borrowers toward riskier private loans. Meanwhile, innovative state programs, like the zero-interest pay-it-forward student loans in Hawaii and upcoming in San Diego, are emerging to fill gaps in financial aid by targeting critical workforce shortages and providing loans with deferred repayment and forgiveness options. These developments reflect a broader effort to address higher education funding challenges amid concerns about accessibility and affordability.