Trump Student-Loan Changes Take Effect July 1 as Courts Block Some Provisions

Several of President Donald Trump's student-loan repayment changes took effect July 1, Insider reported. Ongoing lawsuits blocked key provisions from taking effect, including a narrowed definition of a professional degree and limits to the Public Service Loan Forgiveness program.

On June 24, US District Judge Beryl Howell blocked the Education Department from implementing its narrowed definition of a professional degree.

The definition had been scheduled to roll out July 1 and would have allowed only 11 programs to benefit from the higher $200,000 lifetime borrowing cap while excluding programs like advanced nursing. Howell ruled that the plan was unlawful and would exacerbate the healthcare worker shortage.

The Education Department released an updated list of programs that qualify for the higher borrowing cap, including advanced nursing programs.

The department stated that the designations facilitate implementation of the court's order and may change as litigation proceeds. Two federal judges blocked the Education Department's rule to limit eligibility for the Public Service Loan Forgiveness program one day before it was set to take effect.

The rule, finalized late last year, would have stripped eligibility from employers the administration determined did not meet its public service definition, such as those that supported gender-affirming care.

The Trump administration announced a settlement that eliminated the SAVE plan in March. Beginning July 1, servicers began notifying SAVE borrowers of their 90-day timeframe to transition to a new repayment plan. On June 23, the law firm Public Goods Practice asked a federal court to stop the department from involuntarily moving borrowers to a new repayment plan while the lawsuit proceeds.