Navigating Changes in Federal Student Loan Updates for 2026

Big changes are coming to federal student loans. Effective July 1, 2026, the SAVE Plan ended, and the Department of Education rolled out new repayment options, updated borrowing limits, and new rules that may affect borrowers at every stage, from current SAVE enrollees to incoming first-year students to graduate and professional degree seekers. Whether you’re already repaying loans or preparing to take one out, these changes could impact your monthly payment, repayment timeline, and the total amount you pay over the life of your loan.

Learn what’s changing, why it matters, and the steps you can take today.

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Are You Enrolled in the SAVE Plan?

The SAVE Plan Is Ending.

As of July 1, 2026, the U.S. Department of Education began notifying borrowers enrolled in the SAVE repayment plan that they must choose a new repayment option.

Next Steps for Borrowers (DOE)
Impact on Borrowers (FSA)
HF_save-act-is-over

What You Need to Do

  • Watch your email and mail.
    Your loan servicer will send you a notice.
  • You have 90 days after receiving your notice to choose a new repayment plan.
  • If you don’t choose a plan, you’ll automatically be enrolled in a Standard or Tiered Standard Repayment Plan, which could increase your monthly payment.

New Repayment Options

Depending on when you borrowed your loans, you may qualify for:

  • Income-Based Repayment (IBR)
  • Repayment Assistance Plan (RAP)
  • Standard Repayment Plan

Why This Matters

Compared to previous plans, your monthly payment may:

  • Increase
  • Change based on your new repayment plan
  • Affect how long it takes to pay off your loans

Choosing the right repayment plan can help you avoid higher monthly payments. 

What You Should Do Today

  • Log in to your account at StudentAid.gov.
  • Confirm your email, phone number, and mailing address are current.
  • Read every message from your loan servicer.
  • Compare repayment plans before your 90-day deadline.

If you or a loved one is a NEW student loan borrower

As of July 1, 2026, the U.S. Department of Education no longer offers previous income-driven repayment plans, including the SAVE plan, the Pay As You Earn (PAYE) plan, or the Income Based Repayment (IBR) plans to new student borrowers.

For most new borrowers, RAP becomes the primary income-driven repayment plan.

In addition to RAP, new student borrowers will have access to the new Tiered Standard Plan, a loan option that is primarily aimed at high-earning borrowers.

Repayment Plans (FSA)
CREAR-scholarships

Why This Matters

Compared to previous options for student loans, new plans may mean:

  • Higher monthly out-of-pocket repayment costs
  • Longer standard repayment timelines
  • Greater total lifetime loan coasts
  • Decreased avenues for loan forgiveness

Choosing the right repayment plan can help you plan for long-term success post-graduation.

What you should do today

  • Investigate median earnings for graduates with your intended degree
  • Compare repayment plan options under the RAP and Tiered Standard Plan
  • Consult with the financial aid office at your college or university to ascertain any relevant pathways for additional support

Changes for Graduate Degree Borrowers

As of July 1, 2026, the U.S. Department of Education has begun imposing lifetime caps on federal student loan debt for graduate degree borrowers, including under the Grad PLUS and Parent PLUS loan programs.

Previously, borrowers for graduate programs could carry lifetime loan limits up to the total cost of attending their graduate programs. Now, only some graduate degree programs classified as professional come with guaranteed loans up to the cost of attendance.

Current borrowers may be able to continue loans under the current system for a limit of three years, or until the date of completion of their current program. These existing borrowers will not be able to take out new loans under old Grad PLUS and Parent PLUS terms for future degree programs.

Update to List of Professional Degree Programs (FSA)
HF_save-act-is-over---professional-degrees

Why This Matters

Compared to previous years, new graduate students may:

  • Have loans capped at $20,500 per year, and $100,00 over all
  • Have loans for ‘professional’ designated programs capped at $50,000 per year or $200,000 overall
  • Pay a greater share of their costs out of pocket
  • Be forced to consider private student loan borrowers for graduate degrees

Choosing the right repayment plan can help you plan for long-term success post-graduation.

What you should do today

  • Check whether your intended or current degree falls under professional designation.
  • Consult with the relevant offices of graduate or professional student affairs at your college or university to ascertain the annual costs of your program.
  • Compare those costs with any new loan limits you face to calculate gaps in loan amount.
  • Consult with the financial aid office, or the relevant offices of graduate or professional student affairs at your college or university to ascertain any relevant pathways for additional support
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