DE PERE (NBC 26) — Changes to federal student loan laws will change how much money some new college students can borrow. The federal aid application opens on Oct. 1.
- There are now limits to certain types of federal loans.
- The changes are part of the Trump Administrations "Big Beautiful Bill"
- Student loan experts recommend speaking with financial advisers and being proactive about borrowing.
(The following is a transcription of the full broadcast story)
“Finances can be scary, and when something is scary you ignore it, but that’s the worst thing you can do," Mark Quistorf, a financial adviser at St. Norbert College in De Pere, says.
Throughout the years, Quistorf has seen many changes to the federal student loan program– FAFSA.
“The key is making sure students get the right information," he says.
This year, is no different. Part of the Trump Administration’s Big Beautiful Bill, several changes went into effect on July 1st.
Students who are already enrolled in FAFSA will be grandfathered in, so the changes mainly impact incoming freshman and new graduate students.
“For our returning undergraduates, sophomores, juniors, seniors, for the most part, nothing is really changing," Quistorf says.
For new undergraduates, there’s now a lifetime total borrowing limit of $257,500, part-time students have lower loan limits than full-time students, and there’s a $20,000 loan limit for students using a Parent Plus loan, which is a loan in their parent’s name.
"A limit may not necessarily be bad because it does keep debt down," Quistorf says.
There are also changes to the application process in an effort to make applying for financial aid quicker and easier.
Still, Quistorf, says student loans can be confusing, so the best thing to do is ask for help.
“I think what happens when people get afraid, is they don’t talk to people, so what we’re really encouraging is come to the financial aid office, make an appointment with the financial aid office," he says.
Jack Wallace has 40 years of experience working with federal and private loans. He is currently the director of lender and government relations for Yrefy, a private student loan refinancing company.
“Other than a mortgage, this is the biggest ticket you’re ever going to have," he says.
Wallace says the application window opened two weeks early last year, so it's best to be proactive when applying.
“Financial aid is first come first serve, so we want to be early to fill out the form, create the account, so we can get our request in," he says.
More information on obtaining federal student loans can be found on the FAFSA website.
