Federal Student Aid System to See Major Changes Effective July 1

The federal student financial aid system is set for substantial changes beginning July 1, 2026. These reforms include the discontinuation of the SAVE loan program, necessitating millions of participants to transition to alternative repayment plans. Additionally, new caps will be placed on Parent PLUS and graduate student loans, while a new Workforce Pell Grant aims to broaden access to short-term training. These adjustments will significantly alter options for current and future students regarding borrowing and loan repayment.