Senate bill proposes overhauling student loans, limiting options and capping graduate loans.

A proposed Senate bill aims to revamp the US student loan system by reducing repayment plans to two options, phasing out popular plans like Pay as You Earn, and capping federal loans at $20,500 annually for graduate students and $20,000 for parents. The bill also changes deferment and forbearance processes. If passed, these changes will affect new borrowers starting graduate programs from July 1, 2026, pushing some towards private loans with fewer protections. Current borrowers can still access modified repayment plans.