Education Department Student Loans: Trump's Changes and What It Means

Trump's "One Big Beautiful Bill Act": More Like One Big Beautiful Mess

So, Trump's at it again, huh? This time, he's "reforming" student loans with his One Big Beautiful Bill Act (OBBBA). I swear, the names alone are enough to make you wanna hurl. It's like he's trying to sell us a timeshare, not fix a broken system.

The Department of Education is patting itself on the back, saying they're simplifying things, holding universities accountable, and protecting borrowers from "insurmountable debt." Right. Because that's exactly what the Trump administration is known for: protecting the little guy.

Let's be real: this OBBBA thing is about control. Limiting Grad PLUS loans, capping Parent PLUS loans, and gutting existing repayment plans? It's not about helping students; it's about squeezing universities and controlling the workforce. They're basically saying, "We'll decide what degrees are worth funding." What happens to the art history majors, the social workers, the people who want to do something other than churn out code for Big Tech?

And don't even get me started on the Public Service Loan Forgiveness (PSLF) changes. Apparently, if your employer has a "substantial illegal purpose"—like, say, helping undocumented immigrants or providing gender-affirming care—you're SOL. Substantial illegal purpose? Give me a break. That's code for "anything we don't like." It's a blatant attack on public sector workers and the organizations that support vulnerable communities.

The Devil's in the (Nonexistent) Details

Under Secretary of Education Nicholas Kent says this will "drive a sea change in higher education." A sea change, huh? More like a tsunami of red tape and bureaucratic BS. They claim they're holding universities "accountable for outcomes," but what does that even mean? Are they going to start measuring the value of a degree based on how much money you make after graduation? Because if that's the case, we're all screwed.

And this Repayment Assistance Plan (RAP) they're rolling out in 2026? Sounds suspiciously like another way to keep people chained to their debt. Sure, it offers "some additional relief," but it still requires a minimum payment each month. So, you're still stuck paying, just maybe a little less. It's like putting a band-aid on a gaping wound.

Four cities (Boston, Chicago, and others) are suing the administration over the PSLF changes, calling it an "illegal attack on public sector workers." Good for them. Someone needs to stand up to this crap. But will it even matter? The Trump administration has a knack for steamrolling over anything that gets in its way. You can read more about the proposed changes in What to know about Trump’s changes to student loan forgiveness rules.

I mean, seriously, what kind of world are we living in when helping transgender kids is considered a "substantial illegal purpose?" It's offcourse, completely insane. And the fact that the Education Secretary gets to decide who's ineligible based on "court judgments, legal settlements, or other evidence" – even without a formal conviction – is terrifying. It's like they're building a blacklist.

Then again, maybe I'm the crazy one here. Maybe I'm just too cynical. But I've seen this playbook before. Promise change, deliver control. It's the same old song and dance.

"Streamlining" into Oblivion

The Education Department claims the RISE Committee "refined its proposed regulations in over a dozen areas." Oh, how generous of them! So, they listened to some "stakeholder engagement" and tweaked the wording a bit? That doesn't change the fundamental problem: this is a power grab disguised as reform. US Education Department finalizes major student loan reforms, capping graduate borrowing and simplifying repayment.

And let's not forget that in 2026, most student loan debt forgiveness will become taxable as income. Taxable! So, after years of struggling to pay off your loans, the government gets to take another bite out of you when you finally get some relief. It's highway robbery.

I can't help but wonder what happens to the students who are rethinking their plans because of these changes. The ones who are switching majors to "more financially secure" fields. Are we just going to end up with a generation of drones, all chasing the same high-paying jobs, while the arts and humanities wither and die? Is that really the kind of society we want to create? I ain't so sure.

Another Nail in the Coffin of Higher Education

So, what's the real story? It's not about helping students. It's about control, plain and simple. The Trump administration is gutting the student loan system, punishing public sector workers, and shaping the workforce to fit its narrow, twisted vision of America. And we're all going to pay the price.