About the Government Affairs Updates series
As the federal policy landscape continues to shift rapidly, potential impacts on higher education, and Metropolitan State University of Denver in particular, are top-of-mind. MSU Denver’s Office of Government and External Affairs, in partnership with University Communications and Marketing and experts from across the University, is providing timely, transparent and clear information through this series of Early Bird Q&A articles. Visit the Government Affairs website for more information and updates.
Q: What changes were made to student loans as part of the recent FY25 budget-reconciliation package, and what do they mean for Roadrunners?
A: Congress made several changes to federal student loans, including new borrowing caps and updates to repayment and forgiveness programs. In short, the University’s commitment to accessibility means the cost of a Metropolitan State University of Denver degree remains affordable even in light of federal student-loan limits. Current borrowers will be able to continue their income-driven repayment plans.
1. New caps on federal direct student loans
The new law sets lifetime borrowing limits for graduate students, effective next July 1:
- $20,500 per year
- $100,000 lifetime cap
What this means
All MSU Denver graduate programs cost less than the new cap, and undergraduate caps were not changed, so students here should not see major impacts.
2. Income-driven repayment plans ending
Current income-driven repayment plans — including Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) — will be phased out beginning next July 1 and unavailable to new borrowers.
What this means
MSU Denver students and graduates already on an income-driven repayment plan should be able to stay on their current plan and should stay in close contact with their loan servicer and watch for updated guidance.
More specific info is available through studentaid.gov.
Resources and support
MSU Denver’s Financial Aid Office and Government Affairs team are monitoring these changes closely and will share updates and guidance directly as more details are available.
