Major Federal Student Loan Repayment and Borrowing Limit Changes Take Effect July 1, 2026

Significant changes to federal student loan programs are now in effect, including the discontinuation of the Biden-era "Saving on a Valuable Education" (SAVE) plan for new borrowers, the introduction of new annual and lifetime borrowing limits for graduate students and parents, and a 1% interest rate reduction for federal student loan borrowers enrolled in auto-pay. Borrowers previously on the SAVE plan will have 90 days to transition to a new repayment option.