Financial Education News

On July 1, 2026, the U.S. Department of Education will introduce a new process of student loan borrowing and repayment. This guide will assist students in steering through the latest updates with confidence and continued excitement about furthering their education.

These updates include caps on Parent PLUS and graduate loans and the elimination of some previous borrowing options, which may require students to explore additional funding sources to pay for their college plans. Understanding these new limits is an important step in planning for college costs and making informed borrowing decisions moving forward. Please visit Federal Student Aid for the most recent updates.

Loan Repayment Options Beginning July 1, 2026

Major changes to federal student loan repayment also take effect on July 1, meaning many borrowers will need to review their current plan and choose a new option that best fits their financial situation. In some cases, borrowers may be required to switch plans within a limited timeframe, and those who don’t take action could be automatically placed into a standard plan with higher monthly payments. Use the chart below to compare available repayment options — including income-based and fixed-payment plans — and identify the one that aligns with your budget, long-term goals, and potential forgiveness opportunities.

If you have questions about your current student loans, contact your loan servicer. Visit StudentAid.gov to find your servicer — and take a moment today to review your account so you’re prepared to make informed repayment decisions.