US student loan reform

In late July 2026, U.S. regulators highlighted mounting risks for students faced with aggressive credit‑card and loan marketing and called for stronger consumer protections. At the same time, lawmakers introduced the Outcomes‑Based Financing for Students Act, aiming to tie repayment to post‑graduation earnings and enhance safeguards for low‑income borrowers.

The following day, Congress enacted a sweeping overhaul of the federal student‑loan program under the One Big Beautiful Bill Act. The legislation imposed new borrowing caps for graduate and professional studies, limited Parent PLUS loans, and eliminated new Grad PLUS loans, creating a lifetime borrowing ceiling of $257,500. These restrictions generated a financing gap that private lenders, credit unions, and data firms said they could fill. A related provision – the Workforce Pell Grant – was slated to fund short‑term, career‑focused training pilots, such as phlebotomy and nursing‑assistant programs in Texas, with state officials extending application deadlines to encourage participation.