Significant Federal Student Loan Program Revisions Effective July 1

Extensive changes to federal student loan programs, enacted by the One Big Beautiful Bill Act, are scheduled to begin on July 1, 2026. These modifications will impact repayment and forgiveness options, introduce new federal borrowing limits, and alter Pell Grant eligibility. Key changes include the discontinuation of certain income-driven repayment plans and the elimination of Grad PLUS loans for new graduate students.