Financial Friday Newsletter

The objective of developing financial literacy is to assist you in making sound money decisions that will lead to greater freedom and peace of mind. But what happens when several financial curveballs are thrown at you and your toolbox of financial literacy practices doesn’t seem to be enough? Beginning July 1, 2026, a new framework of student loan borrowing and repayment will take effect. These changes may add pressure to an already strained budget, which is why Oklahoma Money Matters aims to support those navigating financial hardships and providing hope and guidance to students and others who need it.

Normalize Financial Struggles and Reduce Stigma

Financial difficulties can happen to anyone, regardless of background, age, or career stage. Pursuing higher education often comes with complex financial decisions. Students and borrowers should be encouraged to seek help, ask questions and explore support options without shame or embarrassment, recognizing that reaching out for help is a sign of responsibility and self-advocacy, not failure. Borrow Smart from the Start is a great tool to support informed financial decisions.

Understanding Borrowing and Repayment Changes – Effective July 1, 2026

1. Review your current repayment plan and be ready to choose a new one (especially if you’re on SAVE). The SAVE plan is being eliminated, and many borrowers will be required to transition to a new plan within about 90 days of receiving notice. If you don’t choose a new plan, you may be automatically placed into a standard plan with higher monthly payments and fewer forgiveness benefits.

Action: Log in to StudentAid.gov, confirm your current plan, and proactively select a new option before the deadline to avoid automatic enrollment. 

2. Understand the new, simplified repayment options (RAP vs. Tiered Standard plans). Starting July 1, new borrowers will choose between two choices:

• Repayment Assistance Plan (RAP): Payments based on your income (1%–10% of your income), with forgiveness after 30 years.
• Tiered Standard Plan: Fixed payments over 10–25 years based on your loan balance.

Action: Compare both options carefully. RAP helps with affordability when your income changes, while the Tiered Standard plan may cost less long-term if you can afford higher payments. 

3. Be strategic about borrowing due to new loan limits and program cuts.
New rules limit how much you can borrow and eliminate certain programs such as Graduate PLUS loans. Parent PLUS borrowing has now been capped at $20,000 per year per child. 

Action: If you’re still in school or planning to borrow, map out your full funding plan now. You may need alternative funding sources such as grants, scholarships or carefully vetted private loans. Visit Borrow Smart from the Start and UCanGo2 for guidance and funding resources.

4. Stay connected with your loan servicer and watch for important updates. Loan servicers will send notices about plan changes, deadlines, and required actions. Missing these updates could result in automatic enrollment in certain repayment plans, lost benefits or payment increases.

Action: Keep your contact information updated, check your email regularly and respond promptly to any official messages.

During Hardship: Prioritize Scholarships, Financial Aid and Relief Options

If you’re feeling the pressure of paying for college, you’re not alone. Focus on finding scholarships, grants and other support first — these options can lower your costs and limit the need to borrow.

• Complete the FAFSA (Free Application for Federal Student Aid) each year to apply for federal and state aid.
• Visit UCanGo2 and OKcollegestart to search for scholarships.
• Use the Scholarship Success Guide to find scholarship websites and tribal resources.
• Contact your loan servicer about deferment, forbearance or reduced payment options.
• Explore local and state programs for additional support.

Check out our publications to learn more!