06/15/2026
Student loans as of July 1, 2026.
1. Choose a replacement for the SAVE plan
More than 7 million borrowers were enrolled in the Saving on a Valuable Education (SAVE) plan, expecting eventual loan forgiveness. After a legal challenge, the program has terminated, and those enrolled in SAVE must choose a new repayment plan within 90 days. If not, they will be automatically enrolled in a plan without being able to choose a replacement that may best suit their ability to repay.
2. Repayment options are narrowing
July 1 also marks new limitations on repayment options. Two payment plans are being phased out through July 1, 2028: the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans.
Borrowers will have two options:
Standard Repayment Plan allows repayments over 10 to 25 years, depending on the amount borrowed.
Repayment Assistance Plan (RAP) provides an income-based payoff based on 1% to 10% of your adjusted gross income (AGI). There is a minimum repayment due of $10 per month, but no maximum monthly payment limit. Forgiveness is allowed after 30 years.
3. Parent PLUS loans must be consolidated before July 1 for certain benefits
If a student is seeking Public Service Loan Forgiveness, Parent Direct PLUS loans must be restructured into a Direct Consolidation Loan before July 1, 2026. You must also enroll in an income-driven repayment (IDR) plan before the same deadline.
If you do not consolidate Parent PLUS loans before the deadline, income-driven repayment plans will not be an option; only standard repayment plans will be available.
4. Existing Parent PLUS borrowers may have more time
If you are current on payments on a Parent PLUS loan initiated before July 1, 2026, you may be able to remain on the plan until your loan servicer moves you to a new one by July 1, 2028.
5. New loan limits take effect July 1
Loans begun on or after July 1, 2026, will have new borrowing limits:
New Parent PLUS loans will have a $20,000 maximum per year per student, or up to $65,000 per student in a parent's lifetime.
Graduate student loans will be limited to $20,500 annually, to a lifetime total of $100,000.
Professional student loans will have a $50,000 limit, with a lifetime total of $200,000.
6. Existing Parent PLUS loans have no borrowing limits
If your Parent PLUS loan was funded before July 1, 2026, you can continue your loan for up to three more years, or until the program ends, without the new borrowing limits.
7. Deferment and forbearance programs are being eliminated in one year
If you are behind on payments, you may qualify for an Unemployment Deferment or an Economic Hardship Deferment, but be warned: These programs are being eliminated for loans initiated on or after July 1, 2027.
Forbearance will be limited to a maximum of nine months every two years for loans funded on or after July 1, 2027.
