Federal Student Loan System Implements Significant Repayment and Borrowing Changes

Effective July 1, 2026, the federal student loan system has undergone substantial restructuring, impacting borrowers with fewer repayment options and stricter borrowing limits. Key changes include the elimination of Direct Graduate PLUS loans for new borrowers, new annual and lifetime caps, and the replacement of the SAVE plan. These reforms introduce considerable uncertainty for many students and graduates.