When the Big Beautiful Bill (BBB) passed into law this year, it made major headlines, in part due to the ways it would overhaul student loan policies. But behind the policy jargon and political debates are real students whose lives have been reshaped by the fine print — sometimes in unexpected ways. For many, the impact hasn’t just been financial — it’s been deeply personal. From grad school dreams put on hold to unexpected college transfers, the law’s effects are already rippling through students across the country.
The biggest changes to student loans won’t technically take full effect until July 1, 2026, but students are already adjusting their plans in anticipation for that time next year. Many are deciding not to take out additional loans, others are accelerating their graduation timelines, and some are even switching schools in order to lower costs. In many cases, it’s the uncertainty surrounding the law that’s driving immediate action.
Robert Farrington, founder of The College Investor, an online resource that helps students navigate loan debt, tells Her Campus that the BBB law introduces two major changes to college financing: borrowing limits for college and repayment plans after graduation. To that first point, he explains, “The undergraduate limits don’t change (and haven’t changed since 2008), but there are new caps on Parent PLUS loans — which are loans parents take to help their kids for school. There are also new limits on graduate student loans.”
Here’s a deeper look into what students for various educational and economic situations are facing.
Graduate Students Face Tough New Rules
According to the new loan caps, graduate students are now limited to borrowing $20,500 per year, up to a lifetime maximum of $100,000. For professional programs, the cap is $50,000 per year, with a $200,000 lifetime limit. “Given that some schools may cost more than this, borrowers can still take out private student loans to cover that gap,” Farrington says. However, choosing private loans can come with significant tradeoffs, especially depending on one’s career path. “Private loans may actually have better interest rates than federal loans, but they don’t offer key provisions like income-driven repayment or loan forgiveness. This can be especially challenging in fields like education or social work.”
But the changes are even having a serious impact for some students pursuing high-income careers. Lauren Garkow, 25, is a medical student at a school in the Caribbean. She already took out her loans before the BBB was made into a law, so when it comes to borrowing limits, she’s “grandfathered in” under the former rules that were in place. “But the repayment and forgiveness options?” she says. “That’s what’s changed.”
Garkow’s original plan hinged on the Public Service Loan Forgiveness program (PSLF), which allows borrowers to have their student debt forgiven after 10 years of qualifying work in public service, such as residencies in teaching hospitals, which was Garkow’s plan. But the BBB has now redefined what counts toward that 10-year requirement. “Under the bill, the time spent as a resident no longer applies to PSLF,” she explains. “So now, my plan can no longer rely on forgiveness through public service.”
Garkow also describes how isolated she’s felt navigating the changes without institutional or governmental support. “There’s so much I wish people knew,” she says. “First of all, $200,000 is not enough for medical school. I’m halfway through and already over $250,000 in debt. Fifty thousand dollars a year doesn’t cover the average yearly cost of med school — and that’s before rent, groceries, and other living expenses.”
She emphasizes that med school isn’t like undergrad — there’s no real option for a part-time job to make ends meet. “Studying is our full-time job,” she says. “We have classes, anatomy labs, simulations, live patient training, and clinical rotations — on top of the need to study constantly. Getting a job is frowned upon or even disallowed. These changes make it harder to become a doctor — especially for students who aren’t wealthy — and that’s going to make the physician shortage worse.”
Undergrads are feeling the effects too.
Faith Richard, 18, had her college plans flipped upside-down before she even started her first semester. After graduating from a competitive public magnet school in Southeast Louisiana, she had planned to attend Loyola University and major in environmental science. But the BBB changed her financial outlook completely.
“I was devastated. I had to transfer from Loyola University to Southeastern Louisiana University because I just couldn’t afford Loyola,” she says. “I cried when I saw the tuition costs and realized the implications of potentially eliminated subsidized loans.”
Instead of continuing on her original path, she had to make a quick and difficult pivot — one that she believes was avoidable. “I believe both the Trump administration and wealthy private universities are at fault,” she says. “The administration’s goal of encouraging universities to lower tuition by making higher education inaccessible for students like me is just cruel.”
She also warns that the bill’s reach might extend further than people realize. “Even people who already have loans could be affected,” she says. “If you miss a payment or change your plan, you could get hit with the new rules.”
Chelsea Hollins, 26, is a communication studies major at Wayne State University who, after nearly a decade away, decided to return to school to finish her degree. She says the legislation made her more intentional and cautious with her remaining time in school. “I chose not to take out extra loans for my final semester. I’ve been extremely mindful of how much debt I’m taking on — especially now.”
While Hollins recognizes the goal of limiting student loans is, ostensibly, to protect borrowers from taking on too much debt, Hollins is concerned about its broader impact on access to higher education and economic mobility in the U.S. “If fewer people can afford a degree, more will end up in lower-paying jobs — which makes those jobs more competitive and keeps people stuck in poverty cycles,” she says.
Plans Are Changing — But Students Are Resilient
For students who feel overwhelmed or uncertain about their options moving forward, Farrington encourages a proactive and practical approach. “College is a financial investment as much as anything else,” he says. “You need to assess it: How much are you spending, what’s your future income, and how quickly will you need to start paying it back?”
His go-to rule for students trying to decide how much to borrow is simple: “Never borrow more than you expect to earn in your first year after graduation.”
He also emphasizes the importance of transparency for students still in high school. “Start with financial transparency,” he says. “Families need to have honest conversations about what’s saved, what can be paid, and what’s realistic.”
Because whether we like it or not, this is the reality: Plans are upended, hearts are broken, and financial security is uncertain. But despite it all, students are figuring out ways to still get their education and fight for their futures — because that’s what we do.