On May 22, 2025, Greg Abbott urged Congress to finish the One Big Beautiful Bill Act, which replaces the SAVE repayment plan with a new plan that the Center for American Progress estimates will cost Texas borrowers moved off SAVE $2,159 more a year on average. The law also ended Graduate PLUS loans for new borrowers in July 2026 and capped what parents can borrow for a child's college.
Greg Abbott's Statement on the Law That Rewrote Federal Student Loans
- Abbott Urged Congress to Finish a Law That Raises Payments for Texas Borrowers Moved Off SAVE by $2,159 a Year. On May 22, 2025, the day the House passed the One Big Beautiful Bill Act, Greg Abbott said that "there is more work yet to be done to get this legislation to the finish line." The law replaces the income-driven SAVE plan with a Repayment Assistance Plan for loans made from July 1, 2026, and moves current borrowers out of the older income-driven plans by July 1, 2028. The Center for American Progress estimates that Texas borrowers moved from SAVE to the new plan will pay $2,159 more a year on average, and that a single borrower earning $35,000 in 2026 who owed nothing under SAVE will owe $88 a month. TICAS found that the new plan demands payments even from borrowers far below the poverty level and stretches repayment to as long as 30 years.
- The Law Abbott Urged Congress to Finish Ended Graduate PLUS Loans and Capped Graduate Borrowing in July 2026. Since July 1, 2026, the law Greg Abbott urged Congress to finish has barred new Graduate PLUS loans and limited most graduate students to $20,500 a year and $100,000 in total, and professional students such as future doctors and lawyers to $50,000 a year and $200,000 in total, New America explains. The Center for American Progress estimates that the new limits "will create financing gaps for 13 percent of master’s degree borrowers and 46 percent of professional degree borrowers," pushing many toward costlier private loans, which carry fewer consumer protections than federal loans.
- The Law Abbott Urged Congress to Finish Caps Parent PLUS Loans at $20,000 a Year and Ends Their Income-Based Repayment Path. The law Greg Abbott urged Congress to finish limits Parent PLUS borrowing to $20,000 per student each year and $65,000 per student in total, New America explains, and Parent PLUS loans made on or after July 1, 2026 can no longer reach the income-contingent repayment path, which the Center for American Progress calls the program's "only income-based backstop." New America expects the caps to "likely push some families into the private market, where costs are higher, there are fewer protections, and some may not be able to access aid."
What the Student Loan Changes Greg Abbott Backed Cost Texas Borrowers
- Texas borrowers at every degree level pay more after leaving SAVE. For Texas borrowers switched off SAVE, the Center for American Progress estimates average yearly increases of $1,796 for those with some college or an associate degree and $2,472 for those with a bachelor's degree.
Frequently Asked Questions About Greg Abbott on Student debt
What is Greg Abbott's record on college costs and student debt under Trump?
Greg Abbott urged Congress in May 2025 to finish the One Big Beautiful Bill Act, which closes the SAVE repayment plan, ends Graduate PLUS loans and caps Parent PLUS borrowing. Estimates from the Center for American Progress show Texas borrowers leaving SAVE paying more each year, and the graduate loan limits leave many students short of what their programs cost.
How many student loan borrowers lose the SAVE plan under the law Greg Abbott backed?
Under the law Greg Abbott urged Congress to finish, SAVE closes, and about 7 million borrowers nationwide were still in it in June 2026, the Center for American Progress reported; they must leave the old plans by July 1, 2028.
What does the law Greg Abbott backed mean for Texans in graduate school?
The law Greg Abbott urged Congress to finish leaves new graduate students without Graduate PLUS loans, and Texas borrowers with graduate degrees who leave SAVE face $2,385 more a year on average, the Center for American Progress estimates.
Last updated: 2026-10-26