Federal Student Loan System to See Major Changes on July 1

Significant federal student loan reforms are scheduled to take effect on July 1, 2026, altering the current repayment landscape. The popular Saving on a Valuable Education (SAVE) plan will be dissolved, and new limits on federal loan borrowing, particularly for graduate students, will be introduced. Borrowers will face fewer repayment options, and those currently enrolled in the SAVE plan must select an alternative within 90 days. The Education Department has issued updated guidance to help borrowers navigate these upcoming changes.