President Donald Trump’s One Big Beautiful Bill Act was signed into law on July 4, 2025. It includes multiple changes to the federal student loan program beginning in the 2026-27 school year, such as updated borrowing caps for medical and law school students, the elimination of grad PLUS loans, and fundamental changes to income-driven repayment plans.
This new legislation has many college students rethinking their plans for higher education, with over a third (35%) looking into cutting back on schooling and 32% considering pursuing a different degree as a result of these changes, according to a U.S. News survey.
Between July 31 and Aug. 4, U.S. News surveyed 1,190 college students, conducted through PureSpectrum. We asked questions to find out how they’re faring amid the changes to federal student loans, and this is what we found:
— Most college students (61%) say they will be personally impacted by the new budget law, compared with 20% who say they won’t and 19% who answered “I don’t know.” A third (32%) say they’ll feel the effects of the elimination of certain repayment options, such as the Biden-era SAVE Plan.
— Just one in five college students (20%) say they fully understand the impending changes and what they mean for their situation, while about the same amount (19%) say they don’t understand the changes at all. Meanwhile, 39% say they understand the changes somewhat, and 22% say they don’t know how the changes will affect them.
— Half of college students (51%) don’t support any of the law’s changes. Support for specific changes to the federal student loan program maxes out at around 20%, with just a fifth of students approving of borrowing caps or the elimination of certain types of income-driven repayment plans.
— Many students are rethinking their college plans due to the GOP law. Some are considering cutting back on schooling (35%), pursuing a different degree (32%), going abroad to finish school (31%) or joining the military to help pay for school (26%). First-generation college students are even more likely to consider less schooling (45%) or switching majors (44%).
— Some respondents took the time to write about their experiences. “I’m thinking about not finishing law school,” one student says. “I wanted to go to medical school, but now I won’t,” says another. This student put it frankly: “Honestly, I’m cooked.”
[Read: Best Private Student Loans.]
‘Big, Beautiful Bill’ Sows Confusion Among College Students
The new GOP budget measure has an outsized impact on higher education, directly influencing how much money college students can borrow to pay for school and how they repay those loans. And yet, many of the students who are likely to be impacted by this legislation don’t seem too familiar with its details.
We gave college students a list of the changes to the federal student loan program as part of the new law and asked them to identify the ones they’ve heard of. About two-thirds (66%) had heard of at least one of the following changes, including:
— 37% who heard that the law eliminates certain repayment options, like the Biden-era SAVE Plan
— 33% who heard that the law caps borrowing limits at $100,000 for graduate degrees
— 28% who heard that the law caps borrowing limits at $200,000 for medical school or law school
— 26% who heard that the law eliminates grad PLUS loans
One-third of college students (34%) say they weren’t aware of any of the changes that were part of the new law.
When asked to describe their understanding of the changes, just a fifth (20%) say that they fully understand, and about the same amount (19%) say they don’t understand the changes at all. The remainder of the respondents fell somewhere in the middle, feeling “fuzzy on the details” and not knowing exactly how the law might impact their financial situation.
Undergraduates were far less likely to understand the changes than students in graduate school. This makes sense, since graduate and professional students — including those in medical school or law school — are more likely to feel the effects of borrowing caps and the elimination of grad PLUS loans.
The New Law Has Real-World Impact on Today’s College Students
We also asked college students if they were personally impacted by the changes — or if they think they will be affected in the future. About a fifth (20%) say no, while about the same amount (19%) answered “I don’t know.” Meanwhile, 61% say they are impacted, including:
— 32% by the elimination of certain income-driven repayment plans
— 30% by the borrowing caps for graduate and professional school
— 22% by the elimination of grad PLUS loans
— 20% by the borrowing caps for medical and law school
Additionally, many students are changing their plans for higher education as a direct result of the law. With lower borrowing caps and the elimination of federal PLUS loans for graduate and professional students, 38% are considering using a private student loan to help pay for school.
For some, a private student loan isn’t enough to keep them in school. Over a third of college students (35%) are considering less schooling as a result of the changes, including 45% of first-generation students.
Nearly as many (32%) are considering pursuing a different degree than what they’d originally planned. First-generation college students were even more likely to say they’re considering switching majors (44%). Many students wrote in that they’re thinking about dropping out completely.
Here are a few responses we received from college students whose plans were uprooted as a result of the changes:
[READ: Fastest Co-Signer Release Student Loans]
Student Loan Changes Met With Little Support — and Lots of Stress
To get an idea of how college students are feeling, we asked them which of the new law’s changes they support, if any. Over half (51%) answered “I don’t support any of these changes.” For the programs that did garner some level of support, that approval maxed out at about a fifth of students:
— 22% support borrowing caps for graduate school
— 21% support borrowing caps for medical and law school
— 21% support the elimination of certain income-driven repayment plans
— 17% support the elimination of grad PLUS loans
We also asked college students to rate their stress about paying for college before the law and compare it with their stress levels now considering the law’s changes. On the whole, the new law contributed to higher stress levels among college students. Specifically, the number of students who feel “extremely” stressed about paying for college rose when taking the new law into account, from 24% to 31%.
However, there is a silver lining: College students don’t have to navigate the changes to the federal student loan program alone. Among the 63% of college students who have reached out to their financial aid office for help in figuring out how to pay for school, 74% found their school’s financial counselors to be helpful, compared with just 19% who didn’t find them helpful.
Students were much more likely to say their educational institution has been transparent or helpful in informing them about the changes than not, at 51% vs. 36%. Additionally, 74% feel well-informed about their options for paying for college.
Editor’s Note: Responses may have been edited for clarity.
More from U.S. News
Not What the Doctor Ordered: GOP Budget Bill Could Limit Borrowing Options
As Student Loan Grace Period Ends, 27% of Borrowers Aren’t Paying
What to Know About Trump’s Big Beautiful Bill and Student Loans
Survey: College Students Rethink Plans Amid Big, Beautiful Bill originally appeared on usnews.com
