Eight Federal Student-Loan Shifts Borrowers Must Watch Ahead of July 1

Federal student-loan policy is tightening before July deadlines: the SAVE plan has ended and borrowers must pick a new repayment plan within 90 days; ICR and PAYE are being phased out by 2028, leaving Standard or RAP (1–10% of AGI) with a $10 minimum and 30-year forgiveness. Parent PLUS loans must be consolidated and placed in an IDR by July 1, 2026 to keep benefits, with existing borrowers potentially remaining on current plans until 2028. New borrowing limits take effect July 1, 2026 (e.g., up to $65,000 lifetime for Parent PLUS; graduate loans $20,500/year; professional loans $50,000/year). Existing Parent PLUS loans face no limits for up to three more years. Deferment and forbearance programs are being eliminated for newer loans starting July 1, 2027, with forbearance capped at nine months every two years. FAFSA remains required and private loans remain available; borrowers should check studentaid.gov for current options.