July 1 brings big student loan changes. Here's what you need to know
On July 1, new student loan provisions from the One Big Beautiful Bill Act will take effect, ending the Biden-era SAVE repayment plan and introducing two Republican-designed repayment options along with tighter borrowing limits. Borrowers with pre‑July 1 loans will have several repayment choices, including standard, graduated, and extended plans, while those still on SAVE will be required to switch within a 90‑day window. Experts warn that the shift could increase defaults, as many borrowers relied on SAVE’s income‑driven, low‑payment structure.
- ▪The SAVE plan, which offered flexible income‑driven repayment, will end on July 1 and borrowers will receive notices to change plans within about 90 days.
- ▪Two new repayment plans created by Republicans will become available, though the Tiered Standard plan is not offered to borrowers with only older loans.
- ▪Borrowers with loans issued before July 1 and no intention to borrow more can choose from standard, graduated, or extended repayment options, each with different payment structures and terms.
- ▪Stricter borrowing limits will apply to new undergraduate and graduate borrowers after July 1, potentially affecting eligibility for certain loans.
- ▪Analysts caution that moving millions of borrowers out of SAVE to less generous plans may exacerbate the rising trend of student loan defaults.
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Education July 1 brings big student loan changes. Here's what you need to know June 10, 20267:30 AM ET Cory Turner Jenn Liv for NPR On July 1, a host of new student loan changes from last year's One Big Beautiful Bill Act will kick in, including the end of a short-lived Biden-era repayment plan, the start of two Republican-designed repayment plans and strict new borrowing limits for some students. There's a lot to parse, and not every change will impact every borrower. So we've designed this story to make it easy to find the guidance that does apply to you, or to the borrower in your life.
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