Federal Student Loan System to See Major Overhaul in July

The U.S. federal student loan program is set for significant changes beginning July 1, 2026. These reforms will impact repayment plans and borrowing limits for various loan types, including Direct PLUS and Grad PLUS loans. New borrowers will face a revised standard plan and a new Repayment Assistance Plan, while many current income-driven repayment options will be phased out. The Department of Education is also expected to release updated formulas for the Income-Contingent Repayment Plan today.