1030. If you have federal student loans or plan to use them to finance higher education, you must understand significant upcoming changes to the program. Find out the benefits and downsides of new legislation and how it could affect your finances if you’re a current or future student loan borrower.

Key takeaways

• Due to the One Big Beautiful Bill, massive changes to federal student loans will roll out on July 1, 2026, including annual and lifetime borrowing limits
• The SAVE repayment plan is shutting down, and those currently enrolled must choose a new repayment plan within 90 days of notification from their lender.
• Borrowers who miss the SAVE deadline will be automatically enrolled in standard repayment, which could spike their monthly payments.
• Federal student loan repayment plans will be cancelled or phased out and replaced by the new Repayment Assistance Plan (RAP), which launches on July 1, 2026.
• RAP sets payments at 1% to 10% of your adjusted gross income, waives any unpaid monthly interest, matches up to $50 per month toward your principal balance, and extends loan forgiveness to 30 years.
• If you want to shorten your loan forgiveness, enrolling in a legacy repayment plan may be a better option to discuss with your loan servicer.

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