Trump’s ‘Big Beautiful Bill’: How students are rethinking their paths in higher education

When President Donald Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, it promised to reshape the landscape of federal student loans. The law will introduce borrowing caps for graduate, medical, and law students, eliminate Grad PLUS loans, which previously allowed graduate students to borrow beyond federal limits, and fundamentally change income-driven repayment plans, which tie monthly payments to a borrower’s income.For many students, these changes are more than numbers on a page, they are decisions that will shape their academic journeys and financial futures. According to a survey by U.S. News of 1,190 college students conducted between July 31 and August 4, over a third (35%) are considering reducing their course load, while 32% are contemplating switching degrees.

Most students anticipate personal impact

The survey suggests that the new law is not just theoretical. More than 60% of students say they expect to be personally affected, compared with 20% who say they will not, and 19% who are unsure, according to U.S. News. The changes that concern students most include the elimination of certain repayment options, such as the Biden-era SAVE Plan — a program that previously allowed borrowers to cap payments at a percentage of income while forgiving remaining debt after a set period.

About a third of respondents (32%) cited this as a major concern.These numbers show that a majority of students are already feeling the potential financial squeeze and may need to rethink their borrowing strategies and budget planning.

Understanding remains limited

Despite the law’s significance, many students remain unclear about its details. Only 20% of respondents said they fully understand how the law will affect them, while 19% admitted they do not understand it at all. Another 39% understand the changes partially, and 22% are unsure about the implications, according to U.S. News.

Graduate and professional students — including those in medical and law programs — are more likely to pay attention to these changes, since the elimination of Grad PLUS loans and the new borrowing caps directly affect the amount they can borrow for tuition and living expenses.The data highlights the knowledge gap among students, indicating that many may make critical academic or financial decisions without full clarity.

Opposition to the law is widespread

The survey also highlights strong resistance among students. More than half (51%) said they do not support any of the changes. Approval for specific measures is limited, with about one-fifth supporting borrowing caps for graduate school, medical or law school programs, or the elimination of certain income-driven repayment plans, according to U.S. News.Student skepticism points to concerns over limited flexibility and the potential constraints on educational opportunities.

Students reconsidering academic plans

For many, the financial constraints are forcing a reassessment of academic priorities. About 35% of students say they are considering reducing their course load, while 32% are weighing switching degrees. Others are exploring international study options (31%) or even military service (26%) to help finance their education. Among first-generation college students — those whose parents did not attend college — these figures rise to 45% for cutting back and 44% for switching majors, according to U.S. News.Student responses reveal the real pressure of financial changes on life decisions, as some reconsider long-term ambitions or make significant adjustments to their educational paths.Student voices illustrate the weight of these decisions. “I’m thinking about not finishing law school,” one student shared. Another, who had hoped to pursue medical school, admitted bluntly, “Honestly, I’m cooked,” according to U.S. News.

Stress levels are rising

The new law is also affecting student well-being. Those who previously felt “extremely” stressed about paying for college accounted for 24%. That number has now climbed to 31% with the introduction of the Big Beautiful Bill, according to U.S. News.This increase in stress reflects the immediate pressure students face in balancing finances with academic goals, showing the human impact of policy changes.

A policy reshaping higher education paths

The Big Beautiful Bill is more than a legislative change, it is shaping how students plan their academic futures.

With borrowing limits tightening and certain repayment programs eliminated, students are forced to recalibrate priorities, weigh new options, and, in some cases, rethink the very degrees they had planned to pursue.The coming months will reveal the full impact of the law, but for now, students across the country are facing a period of uncertainty, reflection, and careful planning — highlighting just how directly federal policy can influence personal educational journeys.TOI Education is on WhatsApp now. Follow us here.