By Ashley LutzExecutive Director, Editorial GrowthDown Arrow Button IconBy Ashley LutzExecutive Director, Editorial GrowthDown Arrow Button IconSeptember 24, 2025, 10:59 AM ETPresident Donald TrumpScott Olson/Getty ImagesPresident Donald Trump is moving to cap and phase out key federal loan options for parents, which could sharply limit college choices for many families and shift borrowing to the private market, raising costs and risks for lower-income households.
What changed
The Washington Post reports new caps on Parent PLUS loans that leave parents worried they can’t afford preferred schools, signaling reduced federal financing capacity for families starting with the graduating class impacted after rules take effect.
Fortune notes the policy push includes discontinuing Parent PLUS and Grad PLUS for future borrowers as part of broader student-loan changes, alongside tighter borrowing limits and a reworked repayment landscape.
Practical impacts on families
