How the US student loan ‘cliff effect’ could add years and tens of thousands to your repayments
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A new US student loan repayment system, introduced under President Donald Trump’s legislation, will scale repayment terms from 10 to 25 years based on loan balances. Known as the ‘cliff effect’, minor increases in debt can lead to significantly longer and costlier repayment periods. Borrowers may repay up to $50,000 more over time. From July 1, 2026, only two repayment options will be available for new loans, narrowing choices for future US student borrowers. What's Your Reaction?
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