What borrowers need to consider before the July federal student loan changes
Summary
In July, new federal student loan rules will take effect that change repayment plans, borrowing limits, and eligibility. These changes will impact both current and future borrowers, so people should review their loan plans and borrowing needs to avoid surprises and understand potential costs.Key Facts
- Federal student loan changes start on July 1.
- Repayment options, including income-driven repayment plans, will be restructured.
- Some repayment plans may no longer be available to new borrowers.
- Monthly payments could increase for some borrowers under the new rules.
- Borrowing limits and eligibility may change for graduate students and parents.
- Future federal loan availability may be limited for advanced degrees or educational expenses.
- Borrowers should compare current repayment plans, monthly payments, and forgiveness opportunities.
- It is important to consider long-term costs, as lower monthly payments might increase total interest paid.
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