How you borrow, pay off student loans may change on July 1: What to know
Key takeaways
- Whether you are a current borrower, a future borrower, or someone working to pay back their federal student loans, here s what you need to know.
- The SAVE plan will essentially cease to exist on July 1, the Department of Education announced in December.
- Payments for those on the SAVE plan have been paused since July 2024 due to legal challenges, though interest has been accruing since August 2025.
Why this matters: political developments that affect policy direction and public trust.
More specifically, on July 1, the Biden-era Saving on a Valuable Education plan (better known as the SAVE plan) will end, limits will be imposed on how much graduate students and parents (through the Parent PLUS loans) can borrow in federal student loans, and a graduate borrowing program will end.
Whether you are a current borrower, a future borrower, or someone working to pay back their federal student loans, here s what you need to know.
The SAVE plan will essentially cease to exist on July 1, the Department of Education announced in December. Upwards of 7 million federal student loan borrowers were enrolled in the plan, which gave some monthly payments as low as $0.