Over 43 million borrowers must navigate revised federal loan policies, including SAVE plan termination and new borrowing limits.
Federal student loan policies are shifting for 43 million borrowers holding $1.6 trillion in debt, with key changes taking effect July 1. The termination of the SAVE repayment plan, which had enrolled 7 million borrowers, requires participants to select a new plan within 90 days or face automatic enrollment in a less favorable option.
The adjustments follow the 2025 One Big Beautiful Bill, which narrowed repayment options and imposed new borrowing limits. Parent PLUS loans also require restructuring to retain certain benefits. These updates, while less drastic than the 2023-2025 repayment resumption, introduce urgent deadlines for borrowers.
Borrowers who fail to act risk losing access to tailored repayment plans, potentially increasing monthly payments or extending loan terms.