Student loan changes take effect with new payment plans, borrowing caps

President Trump's tax and spending bill has introduced new federal student loan changes, including the elimination of the Biden-era SAVE payment plan and the implementation of income-based and tiered repayment options. Future students face stricter borrowing caps, with limits set for master's, professional, and Parent Plus loans. The Department of Education claims these changes will reduce excessive borrowing and pressure institutions to reassess costs.