With President Donald Trump’s sweeping new tax and education bill set to take effect in July 2026, students across the country are bracing for changes that could alter their academic paths, financial stability, and even their sense of belonging on campus. Surveys show a majority of students believe they will be personally affected, and many are reconsidering whether to continue their current studies, pursue different degrees, or even look abroad for opportunities.
Student Loans Under New Caps
One of the most immediate changes is the imposition of strict borrowing caps. Under the new rules, graduate students will no longer be able to rely on Grad Plus loans, which once allowed borrowing up to the full cost of attendance. Instead, master’s and academic doctoral students will be capped at $20,500 per year and $100,000 total, while those pursuing professional degrees such as law or medicine can borrow $50,000 annually and $200,000 overall.
On paper, these numbers appear generous, but many students argue they do not match the reality of professional programs. Tuition for medical and law school often exceeds the new caps, and without Grad Plus loans, students will be forced to turn to private lenders with higher interest rates and fewer repayment protections. As one law student put it, “I’m thinking about not finishing law school.” Another aspiring doctor admitted, “I wanted to go to medical school, but now I won’t.” For others, the changes feel overwhelming. One summed up the feeling bluntly: “Honestly, I’m cooked.”
The End of the Save Plan and Higher Monthly Payments
Trump’s Department of Education has also dismantled Biden’s Saving on a Valuable Education (Save) plan, which had allowed borrowers to tie monthly payments to income and avoid ballooning interest. Under Biden, around eight million people enrolled in the Save plan. For many, it was the difference between manageable debt and financial paralysis.
Now interest charges are back, and monthly payments are climbing. Faith, a 33-year-old from North Carolina with more than $38,000 in student debt, said the change has left her reeling. “It feels like we’re all going backwards,” she explained. “I wasn’t aware of the detriment it would have on my future. I got my master’s specifically to progress in my career, but what I make now versus what I owe on the degree, it’s almost like it doesn’t make sense.”
Jennifer, a public school teacher in Portland, Oregon, shared a similar story. With $63,419 in federal student loans, her monthly payments nearly doubled when she left the Save plan. “I don’t understand why it’s so high,” she said, explaining that the financial stress has left her “scared for my family plans.” At age 34, she wants to start a family, but now babysits and runs a trivia night to cover her bills. “The [Trump] administration claims to be pro-family, but is screwing a lot of people over, including ones with families, including ones who want to build a family.”
For some, the weight is as much psychological as financial. Sedona, a 30-year-old lawyer in Seattle, owes nearly $171,000 in federal student loans and another $22,000 in private debt co-signed with her mother. Even with a good salary, she and her partner “live paycheck to paycheck.” She described her debt as “always sitting there, as this heavy weight.”
Pell Grants and Aid for Low-Income Students
Lower-income students face additional pressure. A report from the Congressional Budget Office warned that more than half of Pell Grant recipients would receive less aid under Trump’s budget plan. These grants have long been a lifeline for students from working-class families, but reductions mean many may not be able to attend or complete college without taking on substantial loans.
First-generation students are particularly vulnerable. Survey data shows 45 percent are considering reducing their schooling and 44 percent are thinking about changing majors. Many are also immigrants or children of immigrants, making them more likely to be affected by Trump’s rollback of protections against campus immigration raids.
The Changing Face of Loan Forgiveness
Trump’s administration is also redrawing the rules for Public Service Loan Forgiveness (PSLF). Since its creation in 2007, PSLF was meant to reward teachers, law enforcement officers, and other public servants with debt relief after ten years of service. The new proposal would deny forgiveness to borrowers if their employers are deemed to have a “substantial illegal purpose” or are judged to be undermining “American values.”
The Department of Education argues this will prevent taxpayer money from supporting organizations engaged in illegal or harmful activities. Critics, however, warn that the language is so vague it could exclude borrowers based on ideology rather than actual misconduct. One teacher in Oregon asked pointedly, “Why are you punishing people who are dedicating their lives to public service?”
International Students Confront New Barriers
For international students, who make up about six percent of the U.S. student population and contribute an estimated $43 billion annually to the economy, the environment has grown increasingly hostile. Visa restrictions, travel bans, and expanded screenings have created deep uncertainty.
Andre Fa’aoso, a student from New Zealand entering his third year at Yale, said, “Leaving the US after I receive my degree is increasingly a top priority. I might wake up to find Yale at the center of a feud with the administration, with my right to study and remain in the US used as a pawn.”
Iranian students have been especially hard hit by the travel ban. Romina Ayoubi, who was accepted into a PhD program at Columbia University, said, “It is very disappointing to see that all my peers are excited to start their academic journey in NYC and Columbia, and I am the only one who can’t be with them just because I’m Iranian.” Another Iranian scholar, Mahya, described how she had to cancel her lease and flight to Ohio State University after her visa was suddenly revoked: “It was like all my dreams were worth nothing.”
The Fight Over DEI Programs
Another front of change is diversity, equity, and inclusion programs. The Trump administration has made eliminating DEI a cornerstone of its education agenda, leading to the closure of more than thirty women’s and LGBTQ+ centers across Republican-led states.
For students, the closures are not abstract. A University of Alabama student described the Safe Zone center as “a safe place to meet friends on a campus where I otherwise feel isolated.” After the center closed, another student asked, “Am I even wanted on this campus anymore?”
Supporters of the closures argue that DEI programs create division, while critics stress their importance in providing safety and support. Research by The Trevor Project has shown that queer youth are four times as likely to attempt suicide as their peers, but the risk decreases when affirming spaces exist.
Some universities have attempted to rebrand their centers under different names to keep resources available. Georgia Tech merged its LGBTQ and women’s centers into a new department, while quietly maintaining much of the old programming. But students worry these changes are temporary. As one student leader put it, “It’s kind of naive to think that it’s gonna be fine to just rename everything and call it a day.”
Searching for Silver Linings
Supporters of Trump’s policies argue that borrowing caps may prevent students from taking on unmanageable debt, and that shifting money toward private school vouchers will give families more choice. They also claim that reducing international enrollment and DEI programs will protect national security and restore neutrality on campus.
Yet for many students, the costs feel heavier than the promised benefits. Chris, a 46-year-old in Colorado with $50,000 in student debt, said he is trying to keep his loans in forbearance as long as possible. “It’s not that I don’t intend to pay my student debts, I understood it was a loan like any other to be repaid,” he explained, “but the repayment costs need to be able to fit in a budget that allows for personal and professional growth.”
A Generation in Limbo
As tuition rises, grants shrink, borrowing limits tighten, and repayment becomes harder, many students are left questioning whether college is still worth it. Some are changing majors, others are considering leaving the country, and still others are deferring their dreams entirely.
Sedona, the young lawyer in Seattle, captured the frustration of many when she asked, “When do I get to start living my life?” For this generation, higher education under Trump’s policies is not only about books and classrooms but about survival, opportunity, and whether their futures will look brighter than their parents’—or dimmer.
FAM Editor: Universities need the shakeup. They have become quasi-socialist institution and like an socialist behaving entity their prices are spiraling. This needed to change and perhaps a shock to the system is warranted. Unfortunately, current students will be caught in the transition.
