Student loan shake-up hits July 1
Borrowers face substantial changes to student loans beginning next month, including fewer repayment options under President Trump’s tax-and-spending law and the final death blow for the dismantled SAVE plan.
Why it matters: Millions of borrowers must pick a new repayment plan, and some will face tighter borrowing caps and higher repayments.
Here are some of the biggest July 1 changes:
Sayonara, SAVE Plan:
After years of legal limbo and paused repayments, SAVE Plan borrowers will now receive notices to enroll in a different repayment plan within 90 days.
If a borrower doesn’t do so, they’ll be automatically enrolled in the standard repayment plan.
Those who have to switch repayment plans but don’t expect to take out any new federal loans retain more options than those still borrowing.