Significant Federal Student Loan Program Revisions Set for July Implementation

Federal student loan programs are undergoing substantial changes effective July 1, 2026, under new regulations. These revisions include the discontinuation of the SAVE plan, the introduction of a new Repayment Assistance Plan, and adjusted borrowing limits for Parent PLUS and Grad PLUS loans. Additionally, Parent PLUS loans issued after July 1 will lose eligibility for income-based repayment and Public Service Loan Forgiveness. Concerns have been raised by members of Congress regarding potential increases in loan defaults and delinquencies due to these upcoming shifts.