President Donald Trump’s One Big Beautiful Bill is making an impact on college students and parents as the new school year begins.¶
The bill imposed additional restrictions on federal student loan rules that cap how much part-time and new graduate students, and parents of students, can borrow for college payments. Changes were also made to loan repayment options for current and new borrowers. Borrowers have until 2028 to switch to a new repayment plan, even though these loan rules took effect on July 1.¶
Becca Smitty, director of One Stop, Middle Tennessee State University’s hub for financial aid, registration, tuition, billing, and transcript services, said she and the One Stop office have been communicating these changes to students since the Spring semester. She said she’s stressed to students the importance of reviewing the university’s financial web pages, comparing other loan options, and staying informed on applications and deadlines.¶
Smitty said the changes have led to an influx of questions and concerns at One Stop’s office. One Stop was unable to start processing fall loans until recently because of the rules and subsequent system changes, she said.¶
“We’re doing our best to get everything processed and caught up ahead of the payment deadline. Lots of long hours, but we’re moving things as fast as possible,” Smitty said.¶
Changes For Part-time and Graduate Students and Borrowing Limits
Undergraduate student borrowing limits remain the same; however, for the first time, federal loans will be based on the number of credit hours students are enrolled in. Meaning, both undergraduate and graduate students enrolled less than full-time will have their loans awarded in proportion to the number of hours they are enrolled in courses that meet a degree requirement.¶
Students who drop or withdraw from courses may also see a reduction in eligibility for the following term.¶
Smitty said students are used to receiving their full loan eligibility when enrolled in part-time hours, but with the changes, anything under full-time is prorated. She said many students used loans to support their cost of living while enrolled, such as food, gas, or rent, so it’s taken a toll on the non-academic side of their world as well.¶
One Stop has sent a communication to students explaining how to verify their eligibility using their enrollment hours so loans can be processed accurately and quickly, according to Smitty.¶
“It’s going to take education and adapting on all parts to help students maximize their aid eligibility,” Smitty said.¶
Parents' borrowing limits have also been restricted. Federal Parent PLUS Loans now have an annual limit of $20,000 and a total amount of $65,000 per student. Before the loan changes, parents did not have lifetime caps and could borrow up to the full cost of their student’s tuition.¶
Smitty said that some students enrolled before Fall 2026 may qualify for an interim exception, but the school must review each student to determine eligibility. Smitty said One Stop has communicated with families all summer about the delays being caused by the changes.¶
Changes Within Graduate Program Loans
Graduate students now face a cap within their program too. Federal loans are now capped at $50,000 per year and $200,000 total. However, these caps only apply to students enrolled in the Trump administration’s “professional programs” list.¶
Programs not included in the list have their program loans capped at $20,500 per year and $100,000 total. Previously, graduate students could borrow up to the cost of attendance with federal loans.¶
As of last month, a judge’s order has put around 20 degrees, including nursing, back on the list of professional programs for now.¶
Other Loan Options
The changes have also driven students and parents to review Private Education Loan options, with One Stop encouraging the university’s community to consider every avenue. Smitty said One Stop has posted a preferred and historical Private Loan Lender List on its website.¶
“Some schools, as we do, use services such as ElmSelect or Fast Choice that allow you to compare Private Loan Lenders,” Smitty said.¶
Smitty encourages students to apply early to these options since the Private Education Loans process is longer than Federal Student Loans.¶
Despite uncertainty, Smitty said, “the most essential point has not changed.”¶
“A college education is an investment in a student’s future. But students, with their parents’ counsel, should borrow wisely,” Smitty said.¶
Smitty said students should use resources such as the repayment calculator to get an idea of what it will cost to repay federal student loans, and always check their email for important updates.¶
