What To Know As Student Loan Changes Take Effect Today
Key takeaways
- Borrowers can use the Education Department’s repayment calculator to figure out the best plan for them.
- One older plan that is going away is the federal SAVE plan, and borrowers enrolled in that plan will have 90 days starting Wednesday to enroll in a different plan.
- The bill also established new borrowing caps for parents and graduate students who take out loans, and imposed new restrictions for Pell Grants, among other measures.
Topline Wednesday marks new changes to how borrowers take out federal student loans and pay them off, as new rules largely enacted through the “One Big Beautiful Bill Act” take effect and overhaul the federal student loan system.
A Department of Education sign is displayed outside of their federal student aid office on June 3 in Washington, DC.Getty Images Key Facts Last year’s spending bill imposed a number of changes on how student loans are capped, regulated and repaid, including establishing new repayment plans and caps on loans.
The legislation established two new repayment plans—a standard plan and a new income-based “Repayment Assistance Plan,” or RAP—and phased out other existing repayment plans, though borrowers with existing loans can still take advantage of those older plans.