Starting July 1, 2026, major student loan changes from the One Big Beautiful Bill Act take effect. - The SAVE plan ends; 7 million borrowers must switch plans within 90 days or be auto-enrolled in less flexible options.
- New repayment plans include the Repayment Assistance Plan (RAP) and Tiered Standard Plan. - Graduate student borrowing limits drop to $20,500 per year, with exceptions for professional degrees.
- Pell Grants expand to cover short-term workforce training programs. These changes could increase defaults and reduce access to higher education for some borrowers.