By Brendan Scanland
WASHINGTON, D.C. — The Trump administration is reshaping the future of student loans — from Pell Grants to repayment programs — while staffing cuts at the Department of Education are raising questions about whether students will be able to get answers when they need them.
The “One, Big, Beautiful Bill Act” is now law — and for millions of students, experts say, it marks the biggest shift in federal financial aid in decades.
“The One Big Beautiful Bill Act really brings a pretty seismic change across the landscape of financial aid and financing post-secondary education,” said Melanie Storey, the president and CEO of the National Association of Student Financial Aid Administrators, which represents more than 27,000 professionals who help students and families finance their post-secondary education in the U.S. and its territories.
“Maybe most significantly, are changes to the loan programs, both the types of loans students can receive, the amount they can receive, and importantly, the repayment terms that they may have,” said Storey.
Among the most notable changes — Pell Grants will now be expanded to short-term, workforce training programs starting in July 2026. However, there is now stricter eligibility for some traditional Pell recipients.
The bill also eliminates the Graduate PLUS loan program, which Storey warns could hurt the most vulnerable graduate students, or those seeking a graduate education.
“Particularly serving low-income students seeking, very specialized graduate education,” she said. “The elimination of that program is a significant one.”
At the same time, cuts and downsizing efforts reduced staffing at the Department of Education by nearly 50% earlier this year — just as the department prepares to implement the sweeping changes under the new law.
“We are very concerned that with reduced workforce and a significantly increased workload, that we will see either delays to implementation, or more uncertainty for students and families who need to finance their education over the course of the next year or two,” said Storey, adding that the uncertainty could leave students caught in limbo, unsure of what repayment programs or forgiveness options will be available to them when their loans come due.
For now, experts urge students to pay close attention to communications from their colleges and the Department of Education website for updates on what this bill means for their financial future.
According to the Department of Education, most of the new changes under the law are slated to take effect in July 2026.
