Around 43 million Americans have federal student loan debt, or about one in six Americans. The entire landscape of debt repayment looks vastly different after the passage of President Trump's signature legislation, One Big Beautiful Bill. Currently, managing student loans can be challenging for many who struggle to navigate the best way to repay them.
“Being a student in general, I think, can be a little confusing and a little bit of uncertainty with policies changing, and they seem to change quite a bit,” said Carroll College student Taysa Conger, expected to graduate this May.
“There have been a lot of changes that are going to be coming forward for students going into repayment,” said Carroll College associate director of financial aid Carol Will.
(WATCH: Student loan repayment plan changes coming later this year)
These changes started last year, when Congress passed the One Big Beautiful Bill. This bill will impact students and graduates currently using repayment plans, eliminating the current income-driven repayment plans.
Financial aid staff emphasize the need for students to have access to loans for their tuition.
“It's very important, and it's not just for students here at Carroll; it's nationwide,” Will said. “Students who borrow these loans, they need to have options.”
The new plans will take effect on July 1 of this year, with two options. The standard repayment plan has monthly payments over 10-25 years, for students who want to have a set amount that they pay, based on the amount they’ve borrowed. Financial aid staff say a disadvantage is that students may have a higher payment over that length of time.
The repayment assistance plan, or RAP, is income-based from 1-10% of one’s annual gross income, with forgiveness after 30 years.
“These two repayment plan options make it more simple actually, for students moving forawrd because instead of having a larger number of repayment plans, it reduces it to two,” Will explained.
Those with current student loans will have their plan stay the same for two years unless they take action, such as taking out a new loan or consolidating the loans they have. During the transition period, borrowers will be given a transition period to choose a new plan up until June 30, 2028, or be moved into RAP.
Students graduating this year are considered "legacy" students. If they’re borrowing federal student aid, they will have more options than those borrowing in the future.
“They can enroll in all of the current repayment plans that are available to them, and they will also be able to enroll in the new ones that are coming forward,” Will said.
These changes may seem intimidating to students and graduates working towards paying off their loans, and many are keeping a close eye.
“Most students will be on a monthly plan, where the shortest amount of time, you pay it off over 10 years, but that also accrues a lot of interest, which is what I'm trying to avoid,” said 2025 Carroll College graduate Jack Holy.
According to national data from the National Postsecondary Student Aid Studies, 1 in 6 Americans borrow money for student aid. At Carroll College, 50% of students borrow federal student loans.
Carroll College, along with many others across the country, requires students to have an exit counseling meeting with financial aid to map out their next steps and be made aware of changes taking place, which students and graduates say was their saving grace.
“If I didn’t go into that meeting, I definitely would’ve been left in the dark a little bit,” Holy said.
Beyond applying for scholarships, students and graduates are also sharing their advice for the next generation, offering insights on how to navigate these changes and set themselves up for success in the future.
“Just ask for help if you don’t know,” Holy said. “Don't be afraid to ask those questions you’re not expected to know what you're doing going into college.”
“If you’re gonna take loans out, just know your options, come up with a plan, and ask questions,” Conger said.
