The Trump administration has implemented new federal student loan policies effective July 1st that cap borrowing for parents and graduate students while requiring earnings tests for degree programs. These changes mark a dramatic shift in how the government funds higher education, potentially reshaping universities and access to college for millions of American families. Parents can now borrow maximum $20,000 yearly and $65,000 total for undergraduate children, while graduate students face caps of $20,500 yearly ($100,000 total) for standard programs or $50,000 yearly ($200,000 total) for professional degrees like law and medicine.