Federal Student Loan System Undergoes Significant Changes Starting July 1

Major federal student loan reforms are set to begin on July 1, impacting millions of borrowers. The existing SAVE repayment plan will be phased out, requiring borrowers to transition to new options like the Repayment Assistance Plan (RAP) or the Tiered Standard Plan. Additionally, new annual and lifetime borrowing limits will be imposed on graduate students and Parent PLUS loans, though a court has temporarily halted a narrow definition of 'professional degrees'.