Major Federal Student Loan Changes Take Effect, Including New Repayment Plans and Loan Forgiveness

Significant changes to federal student loan programs, effective July 1, 2026, include the elimination of the SAVE plan and introduction of the new Repayment Assistance Plan (RAP), new borrowing limits, and revised Pell Grant eligibility criteria. Additionally, approximately 170,000 borrowers will have their student loan debt forgiven as part of a class-action settlement.