How New Student Loan Borrowing Caps Will Affect the Trinity Community

Clayton Palumbo ‘29

Staff Writer

Over the summer, President Donald Trump’s “Big Beautiful Bill” made headlines across the world for its controversial and comprehensive fiscal policy changes. One of the policies which flew relatively under the radar in the national conversation is the new limits being imposed on federal student loan borrowing. Starting on July 1, 2026, borrowers will face a new lifetime borrowing limit of $257,500 for all federal student loans. The bill also includes a new lifetime limit for unsubsidized federal loans at $100,000 and a new lifetime limit of $65,000 for parent borrowing through the Parent PLUS program. Experts across the country agree that these changes will have major impacts on the way college students and their families borrow money, and consider their education as a whole. University of Chicago Public Policy Professor Lesley Turner said in a CNBC article, “Students are either going to borrow less or make up the difference with private loans, or they will not start or complete (certain) programs.” 

In a conversation with the Tripod, Trinity Assistant Professor of Public Policy and Law Dr. Serena Laws — who has extensively studied the politics of debt and debt relief — says that these policies are “not surprising,” as the Trump administration has been very clear about their intentions to halt Biden-Era loan forgiveness policies. Though Laws says that Trump’s claims about the cost of higher education hold a “kernel of truth,” she described the proposal as a sort of “blunt instrument,” one that may not be the most effective fix for a much more complex problem. 

When asked about how these policies will affect the American public as a whole, Laws noted that it will likely take a while for people to realize the effects on their own lives. She describes a situation where someone may hear about these large amounts of student loan debt. “This is out of control. How are people allowed to borrow so much? That’s not right.” For that person, these caps could be seen as reasonable, if not positive, but Laws counters by saying, “When it’s you or your child who needs to go to college and you don’t have all the money right now, but you’d like to invest in their higher education, and you don’t have access to this better form of borrowing, and instead you have to go and get a private loan or not get a loan at all, you’re going to feel the pain.”

These new changes could signal a significant issue on Trinity’s campus. According to The Princeton Review , 55% of Trinity’s student body have borrowed through a federal loan program, with the average undergraduate financial aid currently sitting at $59,845. In 2025, over 70% of Trinity’s first-year class is utilizing financial aid, according to a presentation in President of the College Dan Lugo’s state of the College address. Given that Trinity already has one of the highest tuitions in the country — 9th highest, according to Business Insider —  these new policies could put the college in a precarious position. According to Laws, “there are going to be a lot of families for whom this makes Trinity out of reach.” The restrictions of federal student loans will not end student loan borrowing, it will only make borrowing more tedious and expensive. Borrowers will have to turn to private, unsubsidized loans — which are typically more expensive, and carry higher post-grad interest rates. “Some people might be denied access to loans that they could have gotten through the federal government previously, but they can’t get through the private market. And in any case, those loans would be more expensive because the interest rates will be higher,” Laws said. “I don’t think you could spin this as being good for access for lower income students.”

For Trinity, who has already been facing financial troubles for years, this could signal real trouble. Trinity is already in an operating deficit, so having a higher percentage of students rely on financial aid could create more budget problems for the institution. It is becoming apparent that the current administration is becoming more and more aware of this issue. In a faculty meeting Laws attended earlier this week, College President Dan Lugo’s presentation suggested  the school may need to focus more attention on students/families who can pay the full tuition, or a greater portion of the tuition. 

There is a lot of uncertainty surrounding these policies. We do not know what the long-term public response will be, how important the issue will be in future political discussions and elections, or whether or not the next presidential administration will choose to extend these limits. However, when thinking about how the borrowing cap will affect Trinity, the policies will almost certainly affect the way families consider Trinity in their college search, as well as the way current students consider their academic and financial futures.