WASHINGTON, D.C. — The U.S. Department of Education announced Thursday that negotiators on the Reimagining and Improving Student Education (RISE) Committee reached a full consensus on a landmark package of reforms reshaping how Americans borrow and repay federal student loans. The changes stem from President Trump’s One Big Beautiful Bill Act (OBBBA), which aims to simplify repayment, cap excessive borrowing, and hold universities accountable for poor student outcomes.
The agreement marks the conclusion of the Department’s latest negotiated rulemaking session, part of a sweeping effort to rein in decades of ballooning student debt and escalating tuition costs. Over two weeks of meetings in September and November, the RISE Committee reviewed 17 major provisions that collectively dismantle several existing loan structures and replace them with a single streamlined system.
Under the new framework, the Department will eliminate the Grad PLUS program—long criticized for driving unsustainable debt—and impose hard caps on borrowing. Beginning in July 2026, new graduate students will be limited to $20,500 in annual loans with a $100,000 lifetime maximum, while professional students will face a $50,000 annual limit and $200,000 aggregate cap. Previously, students could borrow up to the full cost of attendance, a policy that critics say encouraged universities to inflate tuition and expand low-value programs.
The legislation also sunsets the patchwork of repayment options created under prior administrations, replacing them with a single Repayment Assistance Plan (RAP). Officials describe RAP as a simpler, more predictable system designed to prevent borrowers from spiraling into long-term debt or default.
“We appreciate the committee’s efforts to assist the Department in implementing President Trump’s One Big Beautiful Bill Act, which will simplify our complex student loan repayment system and better align higher education with workforce needs,” said Under Secretary of Education Nicholas Kent. “The consensus language agreed upon by the negotiators today will help drive a sea change in higher education by holding universities accountable for outcomes and putting significant downward pressure on the cost of tuition.”
The Department said the consensus reflects significant collaboration, noting that more than a dozen revisions were made to the proposed text in response to stakeholder feedback. Officials expect the finalized language to anchor an upcoming Notice of Proposed Rulemaking (NPRM) to be published in the Federal Register, giving the public an opportunity to comment before implementation.
The RISE Committee’s work fulfills requirements under Section 492 of the Higher Education Act, which mandates that the Secretary of Education consult with the public before issuing new regulations for federal student aid programs. It also represents one of several negotiated rulemaking processes the Trump Administration plans to conduct as part of its broader push to “reform and streamline” postsecondary education policy.
The Department has framed the OBBBA as the most consequential student loan reform in a generation—one that seeks to curb excessive borrowing, restore fiscal discipline, and reorient higher education toward measurable value and return on investment. If adopted as proposed, the new regulations could reshape the financial landscape for millions of future borrowers, signaling the end of an era in federal student lending.
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