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International Business Times UK
International Business Times UK
Niloy Chakrabarti

Student Loans Update: 8 Key Changes Students Must Know, Experts Warn 'Brace for Higher Debt'

Most of the proposed rules are set to take effect on 1st July 2026. (Credit: Photo Credit: Freepik)

The US Department of Education is implementing significant changes to the federal student loan system that could make it more difficult for some students to finance their education. Advocacy groups warn these reforms may force many to turn to riskier private loans or even abandon plans for higher education altogether.

The overhaul stems from President Donald Trump's sweeping One Big, Beautiful Bill Act, a multi-sector reform package that bundles changes to education, immigration, taxes, and federal spending into a single legislative push.

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