The Big Beautiful Bill Gives Some of Higher Ed’s Ugliest Problems a Makeover

This law does so much that major provisions—like the elimination of Grad PLUS loans—that would’ve made headlines on their own are now easy to overlook. - Andrew Gillen

To help make sense of it all, here’s my take on the best and worst parts of the new law.

• What are the Best Provisions in the Law?

The new law has five big improvements.
One, it eliminated Grad PLUS loans. Grad PLUS was the worst of the loan programs...Taxpayers lost tons of money on the loans, around 24 cents for every dollar lent...
Two, Parent PLUS loans now have maximum caps. Parent borrowing was previously limited only by the college’s cost of attendance, but will now be capped at $20,000 per year...
Three, a new income-driven student loan repayment plan was created...

• What are the Worst Provisions in the Law?

My biggest concerns about the law concern the new repayment assistance plan (RAP) for student loans. RAP largely mimics the payment burdens of the Obama-era REPAYE plan. 

But it contains two features that worry me: it waives any unpaid interest, and it guarantees that a borrower’s principal will be reduced by at least $50 per month when they make the required monthly payment...