A major overhaul of the federal student loan system officially took effect this week, marking one of the most significant changes to higher education financing in decades.
The reforms, passed as part of last year’s Republican-backed budget package, are designed to curb runaway student debt, simplify repayment plans, and discourage students from taking on massive loans for degrees that may never provide enough income to justify the cost.
Supporters argue the changes are a long-overdue correction to a system that encouraged excessive borrowing while shielding borrowers from the true cost of their financial decisions.
