July 1 Overhaul Restricts Repayment Options for New Federal Student Loans
TL;DR Summary
Starting July 1, anyone taking on new federal student loans will be labeled a 'new borrower' and face only two repayment paths (RAP and Tiered Standard), effectively eliminating access to IBR and other plans for new debt; existing borrowers keep some options, while Parent PLUS loans after July 1 lose PSLF eligibility; unemployment or economic hardship deferments are phased out for new loans; consolidating after July 1 is treated as a new loan; borrowers should reassess borrowing, consider who takes out loans, and weigh private loans carefully.
- Student loan borrowing is 'high stakes' as new rules take effect on July 1, CFP says. What to know CNBC
- Student Loan Repayments Are Being Overhauled. What Borrowers Should Know. The New York Times
- Federal student loan rates to rise, making other options better for some USA Today
- On-Campus Students, Online Classes: What Are They Actually Paying For? The College Investor
- Sweeping federal student loan changes prompt concerns for some Michigan borrowers The Michigan Independent
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