August 22, 2025
In a recent survey, a significant 61 percent of college students expressed that the recent modifications to the federal student loan system will have a direct effect on their educational journey. These changes, which were enacted earlier this summer, have raised concerns among students regarding their financial futures.
Among the most notable alterations are the limitations on borrowing amounts, the discontinuation of certain income-driven repayment options, and the termination of Grad PLUS loans. These adjustments have left many students feeling uncertain about their ability to finance their education.
The survey, which included responses from 1,190 undergraduate and graduate students, aimed to gauge the implications of the One Big Beautiful Bill Act on their lives. Alarmingly, 38 percent of participants indicated they might need to resort to private loans to mitigate the impact of these changes, while 35 percent feared they might not be able to complete their degrees. Additionally, a quarter of the respondents mentioned they were contemplating military service as a means to fund their education.
One student poignantly remarked, “I had aspirations of attending medical school, but now I feel that dream slipping away,” highlighting the emotional toll these reforms can take.
Interestingly, one in five students admitted they were unaware of the recent changes to student loans, while 39 percent felt unclear about the specifics of the new legislation. Furthermore, 22 percent acknowledged they understood the law but were uncertain about its personal implications.
Despite the challenges, some students showed support for certain aspects of the bill. Approximately 20 percent approved of the proposed borrowing limits for graduate students, as well as the caps for medical and law students, and the removal of specific income-based repayment plans. A slightly smaller group, 17 percent, expressed approval for the elimination of Grad PLUS loans.
In response to these changes, around 63 percent of students sought assistance from their financial aid offices to better understand the implications of the new law. Of those who reached out, three-quarters found the guidance provided by their financial aid offices to be beneficial. Additionally, 51 percent of students reported that their institutions had been open about the potential effects of the new legislation.
As students navigate these turbulent waters, it is crucial for educational institutions to continue providing support and clarity regarding financial aid options and the implications of recent legislative changes.