Sweeping federal student loan overhaul begins July 1: Key changes borrowers need to know
By
Medora Lee
7h ago· 5 min readenNews
Summary
Starting July 1, 2026, the most sweeping overhaul of federal student loans in decades takes effect. Key changes include loan caps for new borrowers, elimination of Grad PLUS loans, reduction to only two repayment options, and requirements for existing borrowers to consolidate or choose new plans to avoid being involuntarily placed in unsuitable repayment plans. Parent PLUS borrowers face specific changes. The article outlines what borrowers need to know to navigate these shifts.
Source
bskySweeping federal student loan overhaul begins July 1: Key changes borrowers need to knoweu.usatoday.comKey quotes
· 3 pulledAll borrowers, old and new, may be affected.
New borrowers will face loan caps, elimination of Grad PLUS loans, and only two repayment options.
Old borrowers may need to consolidate loans, choose new repayment plans or risk being involuntarily placed in one that may not fit their budget, loan experts said.
Sweeping federal student loan changes start July 1. Borrowers face new caps and repayment plan shifts that may affect your budget.
Comments
Sign in to join the conversation.
No comments yet. Be the first.