4 things student loan borrowers should do before July 1
Summary
Starting July 1, major changes will happen to federal student loan repayment programs, requiring borrowers to actively manage their loans. New rules will simplify repayment plans, limit borrowing amounts for some groups, and end certain loan options, affecting many students and families.Key Facts
- The federal student loan system changes on July 1 will require borrowers to take actions rather than just wait.
- The One Big Beautiful Bill Act is causing these changes by simplifying repayment plans and setting borrowing limits.
- After July 1, most borrowers will choose between a standard repayment plan and a new plan called the Repayment Assistance Plan (RAP).
- Existing repayment programs such as the SAVE program will be phased out over time.
- Graduate PLUS loans will no longer be available to new borrowers starting July 1.
- New borrowing limits will apply to graduate students, professional students, and parents using Parent PLUS loans.
- Some current borrowers may qualify for "grandfathered" rules allowing them to borrow under old rules for a limited time if they remain in the same academic program.
- Borrowers should review repayment plans, check qualification for grandfathered rules, and reconsider their college financing plans before July 1.
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