Major Federal Student Loan Changes to Take Effect July 1, Reshaping Borrowing and Repayment

Significant federal student loan changes stemming from the One Big Beautiful Bill Act are set to become effective this week, starting July 1. These reforms will impact future borrowing decisions and repayment strategies for many, including the elimination of Graduate PLUS loans for new borrowers, new annual and lifetime borrowing limits for graduate students and parents, and the phasing out of the SAVE repayment plan, replaced by new Repayment Assistance Plan (RAP) and Tiered Standard Plan options.