Congress Passes Trump Bill Reshaping Student Loans, School Choice

President Donald Trump's 'One Big Beautiful Bill' recently passed Congress, marking a significant shift in federal education financing and assistance. The bill introduces new student loan provisions, including annual and lifetime borrowing caps for graduate, professional, and parent borrowers, effective July 2026, while reducing repayment plan options to two and extending forgiveness periods. In addition, it includes the first-ever federal tax-credit scholarship program to support private school tuition, allowing donors to receive tax credits for contributions to scholarship organizations, with broad student eligibility and state opt-in provisions. The American Federation for Children hailed this inclusion as a historic milestone for school choice and pledged to advocate for widespread state participation. The bill also slightly increases the child tax credit from $2,000 to $2,200 per child, a move that has drawn mixed reactions. Overall, the legislation signals a pivot toward increased private financing in education and expanded school choice, with implications for families, borrowers, and private lenders.