Although President Donald Trump claims his One Big Beautiful Bill, signed into law July 14, will reduce financial stress on Americans, critics say its cap on student loans could make higher education even less accessible to those who most need help.
Senior Zoe Huelster, who’s currently navigating the college process, shared her opinion on the loan caps. “It’s unfair because it will make it harder for people who can’t finance all of their own college tuition to attend the institutions they want to.”
Director of College Counseling Tina Elfenbein shared that, in addition to capping student loans, her conversations with higher education enrollment officials have “focused on other areas of concern: international student enrollment, the endowment tax and government oversight of admission and enrollment work.”
A March executive order indicated Trump’s plans to shut down the Department of Education entirely, claiming that “closing the Department of Education would provide children and their families the opportunity to escape a system that is failing them.”

Senior Shefali Meagher said the attacks on education are unsurprising. “It makes sense in terms of allocating more money to certain initiatives that Trump really is a fan of,” she said.
Making good on his March executive order to dismantle the DOE, Trump relayed that the federal student loan portfolio would be moved to the Small Business Administration. While this executive order has yet to be implemented, moves have been made to lessen the DOE’s duties under the OBBB, exemplified in the recent loan caps for both students pursuing higher education and parents of students pursuing higher education.
These caps likely won’t just affect students looking to attend private schools but all forms of higher education.
As of July 1, 2026, borrowers will have a lifetime borrowing limit of $257,500 for all federal student loans. For students seeking a professional diploma, such as prospective doctoral students, borrowing is capped at $50,000 a year and $200,000 over a lifetime.
According to the Association of American Medical Colleges, the average cost of a medical degree at a public institution is $286,454.
Elfenbein shared words of wisdom for students looking at colleges in these uncertain times: “I think we all need to be cautious; there is a tremendous amount of uncertainty now and that will likely persist. When it comes to college admissions and financial aid, the landscape changes frequently. All students, parents and those who support them can do is try to stay informed and to make the best decisions available with the most accurate information at hand.”

According to NPR, 1,400 department employees have been laid off, as of July 1. Additionally, many have taken early retirement, cutting the staff to about half its size before Trump took office. The staffing changes could make it difficult to implement new policies around student loan overhaul.
During his first term, Trump proposed eliminating the Public Service Loan Forgiveness program and consolidating repayment options, signaling less government support for financing higher education. In his second term, this stance has solidified, culminating in the OBBB’s loan caps and effort to dismantle the Department of Education altogether.