US Education Department finalizes major student loan reforms, capping graduate borrowing and simplifying repayment

The US Department of Education has reached a pivotal milestone in reshaping the nation’s student loan picture, finalizing consensus on sweeping reforms under the One Big Beautiful Bill Act (OBBBA). The Reimagining and Improving Student Education (RISE) Committee, after intensive deliberations over September and November, agreed on a comprehensive framework to simplify repayment, cap excessive borrowing, and impose greater accountability on higher education institutions. The changes aim to protect borrowers from unmanageable debt while aligning student loans with realistic workforce outcomes. These reforms represent a significant recalibration of the federal student loan system, targeting decades of complexity and inefficiency. By streamlining repayment plans, imposing limits on graduate