Federal student loans change on July 1. Act now before choices narrow
Key takeaways
- Federal student loans change on July 1.
- President Donald Trump's signature tax and spending package passed last July enacted sweeping changes to the way families can borrow to pay for school.
- Since there will be so many changes at once, experts are warning students to learn about them now so they can choose plans that best fit their budgets.
Federal student loans change on July 1. Act now before choices narrow Medora Lee, USA TODAY Tue, June 2, 2026 at 4:02 PM GMT+7 5 min read One of the biggest federal student loan overhauls in decades is coming July 1, and borrowers should start preparing now, experts said.
President Donald Trump's signature tax and spending package passed last July enacted sweeping changes to the way families can borrow to pay for school. Changes include eliminating some repayment plans, introducing new ones and adding new loan limits to others.
Since there will be so many changes at once, experts are warning students to learn about them now so they can choose plans that best fit their budgets. If borrowers enrolled in certain plans don't act, the Department of Education (ED) will automatically enroll them into one of the new plans that launch on July 1.