Millions of Student Loan Borrowers Urged to Act Now Before Deadline Hits
Summary
The U.S. Department of Education is changing rules for federal student loan repayment plans starting July 1. Some borrowers must act soon to keep access to affordable payment plans like PAYE, as older plans like SAVE will end and new rules could block enrollment in some plans.Key Facts
- New federal student loan repayment rules start July 1.
- The SAVE repayment plan will end this summer, forcing borrowers to switch plans.
- PAYE and ICR plans remain available but will end in 2028.
- IBR will continue but only for borrowers who avoid new loans or consolidation after June 30.
- A new Repayment Assistance Plan (RAP) will start this summer with longer time before forgiveness.
- Borrowers currently eligible for PAYE could lose the chance to enroll after July 1 unless they apply before then.
- Borrowers planning to consolidate loans or take new loans after June 30 may lose eligibility for some plans.
- Experts advise borrowers to act quickly before July 1 to avoid losing access to lower payment plans.
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