Key facts
- A federal judge blocked part of a Trump administration rule.
- The blocked rule would have lowered federal loan limits for graduate students.
- Nursing and other graduate students can now access higher federal loan limits.
- The U.S. Education Department issued a revised rule to comply with the order.
- The Education Department continues to fight the original rule in court.
- President Donald Trump's student loan overhaul begins July 1.
- The overhaul impacts repayment plans and borrowing caps.
- Borrowers in the SAVE plan have 90 days to switch plans after receiving an email.
- Failure to switch plans results in placement in the standard, most expensive option.
A federal judge has blocked a Trump administration rule that would have reduced federal loan limits for graduate students, thereby allowing nursing and other graduate students to access higher federal loan amounts. The U.S. Education Department has issued a revised rule to comply with this judicial order. The department continues to litigate the original rule in court.
Separately, President Donald Trump's comprehensive student loan overhaul is set to take effect on July 1. This overhaul will alter existing student loan repayment plans and borrowing caps. For borrowers currently enrolled in the SAVE plan, there is a grace period. They have 90 days from the date they receive an email from the Education Department to opt for a different repayment plan. If they do not switch plans within this 90-day window, they will be automatically placed into the standard repayment plan, which is described as the most expensive option.