Millions of Student Loan Borrowers on SAVE Plan Will Soon Need to Find a New Repayment Option
The overhaul replaces SAVE with new repayment plans and adds borrowing caps for graduate, professional and Parent PLUS loans, officials said.
- On July 1, 2026, the Education Department will implement sweeping changes from the One Big Beautiful Bill Act, streamlining the federal student loan system and imposing new borrowing caps on graduate and professional degree programs.
- The Trump administration is winding down the Biden-era Saving on a Valuable Education plan, forcing more than 7 million enrolled borrowers to select new repayment options within 90 days of receiving notices beginning July 1.
- New rules cap lifetime borrowing for graduate students at $100,000 and professional students at $200,000, while introducing the Repayment Assistance Plan and a tiered standard plan for borrowers taking out new loans after July 1.
- Two dozen states, plus the District of Columbia, and professional associations sued the Education Department over its narrow definition of 'professional' degree programs, arguing the policy will worsen healthcare worker shortages.
- Legal experts warn potential injunctions could create confusion for institutions and students, as courts weigh the policy's legality before the July 1 deadline; the future of postbaccalaureate borrowing remains uncertain.
14 Articles
14 Articles
Millions Of Student Loan Borrowers Face Rule Changes On July 1 — What Borrowers Need to Know
Millions of Americans with student debt face significant changes when a major federal student loan overhaul takes effect on 1 July. Several repayment plans will be eliminated, new borrowing limits introduced, and some borrowers could be moved into different repayment arrangements if they do not take action. The reforms, signed into law by President Donald Trump last year, are intended to simplify the student loan system. However, experts are urg…
Student loan borrowers in Milwaukee face higher payments as federal repayment plans change
The U.S. Department of Education is giving borrowers enrolled in income-driven repayment plans at least 90 days to enroll in a new plan of their choice, but some Milwaukee borrowers say the new options are raising their monthly payments by hundreds of dollars.Ebony Kirkendoll, a first-generation college graduate and student loan borrower, said she took on student loans at 17 as the only way she could afford college. She is currently on an income…
Millions of student loan borrowers on SAVE plan will soon need to find a new repayment option
More than 7 million borrowers will soon need to find a new repayment option for their federal student loans - though even the new plan they choose could disappear quickly.
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