Major Federal Student Loan Changes for 2026 Announced, Including New Repayment Plan and Elimination of Grad PLUS Loans

Significant changes to federal student loan programs are taking effect in 2026. The Repayment Assistance Plan is replacing the SAVE plan, while SAVE, PAYE, and ICR plans will no longer be available to new borrowers starting July 2026. Additionally, Grad PLUS loans are being eliminated for new graduate and professional students, with new borrowing caps introduced for these groups.