Major Federal Student Loan Changes Take Effect July 1 Across Ohio
Sweeping federal student loan changes taking effect July 1 will eliminate graduate borrowing programs and restructure repayment options for Ohio students.
COLUMBUS, OHIO — Federal student loan borrowers across Ohio will face significant changes to the lending system starting July 1, as new regulations implementing reforms take effect nationwide.
The overhaul stems from congressional Republicans’ tax and spending cut bill that President Donald Trump signed into law last year. The U.S. Department of Education finalized regulations on May 1 after receiving more than 80,000 public comments.
Under Secretary of Education Nicholas Kent said the reforms focus on “lowering the cost of college, simplifying student loan repayment and restoring accountability to the federal student lending system,” during an April 30 call with reporters.
Grad PLUS Program Eliminated
One of the most significant changes involves eliminating the Grad PLUS program, which previously allowed graduate and professional students to borrow up to the full cost of attendance. The program will become unavailable for new borrowers starting July 1.
Critics warn the changes will likely make loans more expensive and difficult to obtain for borrowers, potentially driving them to private lenders or forcing them to alter their higher education plans.
New Loan Limits and Repayment Structure
The reforms introduce new loan limits for graduate and professional students, replacing the previous unlimited borrowing structure. The repayment system will be restructured so new borrowers will have only two repayment plans to choose from, down from the current multiple options.
The changes affect borrowers nationwide, including thousands of Ohio students attending institutions like Ohio State University, University of Cincinnati, and other colleges across the state. The average federal student loan debt balance currently stands at $39,547, according to the Education Data Initiative.
Implementation Timeline
Most provisions of the new regulations will take effect July 1, giving current and prospective borrowers limited time to understand how the changes will impact their educational financing options.
The Department of Education published the final regulations in the Federal Register on May 1, marking the culmination of a regulatory process that began with the passage of the Republican-led legislation last year.
Ohio students and families planning for the upcoming academic year will need to navigate these new rules when applying for federal student aid. The changes represent some of the most significant modifications to federal student lending in recent years.
