New student loan rules shake up families |
Major changes to federal student loan rules will take effect on July 1, prompting families in Southwest Florida to reconsider their college funding strategies. The U.S. Department of Education aims to simplify repayment and reduce excessive borrowing, stating: "Beginning this summer, the Department will implement commonsense loan limits on how much students and parents can borrow." These reforms, stemming from President Donald Trump's Working Families Tax Cuts Act, include new borrowing caps and a new income-driven repayment plan called the Repayment Assistance Plan (RAP). Kimberly Cahalan, a mother from Estero, emphasized the importance of scholarships and grants to minimize debt, saying: "We basically tried whatever we could do to not have him have debt." Borrowers are urged to act quickly, especially Parent PLUS borrowers, to avoid losing access to certain repayment options. The Department of Education reports that the average federal student loan debt is nearly $40,000 nationwide, with changes continuing through 2028.