SPRINGFIELD, MA (WGGB/WSHM) — National College Decision Day is less than a month away, with students facing a May 1 deadline to choose a school and put down a deposit. However, this year, new federal legislation is changing how students access and repay student loans, adding another layer to an already complicated decision.
The decision of where to go and how to pay for it has become difficult for anyone looking to attend college. “When it came down to that decision of where I wanted to go, it ultimately came down to that financial aid situation and where I could benefit the most from,” said Dante Iafrate, a junior at Springfield College.
Changes and uncertainty around federal student loans and repayment are adding a new layer of stress for students this year. Last July, as part of President Trump’s Big Beautiful Bill, key changes were made to the financial aid the federal government would provide, especially when it comes to borrowing money for campus housing and having enough credits to get aid. Legislation that changes how federal aid is given out and how it is meant to be repaid can cause confusion among students and parents, leading them to campus financial aid or enrollment offices.
The biggest change for undergraduates is the Parent PLUS loan, now capped at $20,000 per year and a lifetime limit of $65,000, said Kathleen Chambers, director of financial aid at Western New England University. For some, that could mean relying on private loans to fill in the gap. For graduate or professional students, the Grad PLUS loan has been eliminated. That means some would also need private loan programs for anything greater than what they are already eligible for with unsubsidized loans.
The takeaway for students and their families who rely on federal loan programs is they may need to plan for more out-of-pocket options, a less expensive college, or be prepared for potentially higher loan payments after graduation. “I would say, when it comes to taking out those student loans, it just came down to what the future would look like, what that would look like in the process of paying those off,” Iafrate said.
Before putting down a May 1 deposit, students should make sure the price is one they can live with after graduation.
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