Student Loan Updates: Borrowing Limits and Repayment Plans Under the New Tax Bill

In this episode of the Sunlight Tax podcast, I break down the One Big Beautiful Bill Act and what it means for student loan borrowers. Learn about the new student loan borrowing limits, updated repayment plans, and the challenges facing legacy borrowers under the new law.

If you’re navigating student debt, education financing, or tax law changes, this episode gives you the clarity and resources you need to make informed financial decisions.

 

Also mentioned in today’s episode:

01:00 Introduction to the One Big Beautiful Bill Act

06:42 New Borrowing Caps and Repayment Plans

13:31 Navigating Legacy Borrower Challenges

 

Takeaways

• New student loan borrowers will have only two repayment options after July 2026.

• The SAVE program is ending, impacting many borrowers.

• New lifetime caps on borrowing for education will be implemented.

• Half a million borrowers may see increased payments due to changes.

• Low and middle-income students may struggle with graduate school costs.

• The RAP plan offers more flexible repayment options for borrowers.

• It's crucial to stay informed through reliable resources and articles.

• Navigating student loans requires careful consideration and action. 

 

If you enjoyed this episode, please rate, review and share it!
Every review makes a difference by telling Apple or Spotify to show the Sunlight Tax podcast to new audiences.

 

Other Sunlight Tax podcast episodes about OBBBA:

• Unpacking Trump’s New Tax Law: What You Need to Know About the One Big Beautiful Bill Act

• Breaking Down Trump’s New Tax Law: Cars, New Loan Interest Deduction, and Expiring Energy Credits

• New Tax Bill: No Tax on Tips, No Tax on Overtime, and New Deduction for Seniors

 

Links:

Help article by Tara Siegel Bernard from the New York Times

This article on the NPR website, by Cory Turner 

Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed.

Link to pre-order my workbook, Taxes for Humans: The Workbook

Get your free visual guide to tax deductions

Check out my program, Money Bootcamp