Trump spending bill brings major changes for some student loan borrowers

LANSING, Mich. (WILX) -New rules for college students borrowing money from the federal government are on the way.

The changes are part of President Donald Trump’s spending bill. Starting July 1, 2026, graduate students pursuing professional degrees will be able to borrow up to $200,000 in federal student loans.

The average graduate student will cap out at $100,000 borrowed. Either way, it means Michigan State University pre-veterinary student Kate Brady might have to find additional sources to fund four or more years of vet school.

“I just really hope it works out the way we all want it to,” she told News 10. “If it doesn’t, that’s a sticky situation.”

Members of Congress are hoping the change will push universities to adjust.

“Since January, the Trump administration’s pro-growth policies have created opportunities for our workers and job creators to succeed in a booming economy, including reforms to our student loan system to help drive down out-of-control college costs,” Congressman Tim Walberg (R-Michigan) said in a statement the day the President’s spending bill was passed.

Brady is equally eager to see universities change their tuition rates, saying education has long been inaccessible to people who aren’t financially comfortable enough to pay for it out of pocket.

“I know a lot of people who are not pursuing the career they truly want to,” she said. “So, I think it’s good that something is finally being done.”

Still, if universities aren’t receptive to the new rules, Brady believes it could be an obstacle for the doctors, lawyers and veterinarians of the future.

“That’s going to be a very big problem for a lot of people,” she told News 10. “Myself included.”

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