Federal Student Loan Programs to Undergo Significant Revisions in July 2026

Major federal student loan program changes, enacted in July 2025, took effect on July 1, 2026. These revisions include discontinuing the Grad PLUS program for new borrowers, establishing new annual and lifetime borrowing caps for graduate and Parent PLUS loans, and consolidating existing income-driven repayment plans into two new options. Additionally, Pell Grant eligibility now considers foreign income and excludes students with full non-federal scholarships. These changes significantly impact future student borrowing and financial aid access.