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

Significant changes to the federal student loan system, primarily stemming from the One Big Beautiful Bill Act (OBBBA), will reshape how students borrow and repay loans starting July 1, 2026. New borrowers will have a narrower set of repayment options, including a Standard Repayment Plan and a Repayment Assistance Plan (RAP). The SAVE Plan is ending, and new annual and aggregate Direct Unsubsidized Loan limits will apply to graduate and professional students, with Graduate PLUS Loans no longer available to new borrowers.