Starting on July 1, the federal government will make some big changes to how student loans can be repaid or forgiven.
A MARTÍNEZ, HOST:
Some major student loan changes go into effect on July 1. They were part of Republicans’ One Big Beautiful Act last year. NPR education correspondent Cory Turner runs through the top six changes in 90 seconds.
CORY TURNER, BYLINE: All right. Here we go.
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TURNER: One – it’s the end of the short-lived Biden-era repayment plan called SAVE. If you’re one of the 7 million borrowers who is still enrolled in SAVE, it’s time to switch plans, or else your loans will automatically be moved in one of the least flexible standard repayment plans.
Two – new borrowers, you’re going to have two new repayment plans to choose from but only those two moving forward, including an income-based plan known as the Repayment Assistance Plan, or RAP. Borrowers are likely going to have to pay more under RAP than they would have under SAVE, but it does have a few perks, including waiving extra monthly interest and helping lower-income borrowers chip away at their loan principle.
Three – student loan forgiveness. It’s going to be a little harder to come by for new borrowers, though they can still qualify for public service loan forgiveness, which promises debt cancellation after working 10 years in a public service job.
Four – new grad students, you’re going to see some tight new loan limits. Instead of being able to borrow as much as you need each year, grad students will be limited to $20,500 a year unless you’re enrolled in one of 11 professional degree programs.
Five – parents and caregivers who want to take out Parent PLUS loans, you will also see new limits – $20,000 per child per year.
And six – the Pell Grant program for low-income students is being expanded to cover workforce training. Think courses between 8 to 15 weeks for things like welding or to become a nursing assistant.
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TURNER: Cory Turner, NPR News.
MARTÍNEZ: Cory had 90 seconds to work with there. And because I know you want to hear more, go to npr.org, where we’ve got just about everything you need to know about the coming student loan changes.
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Cory Turner 2026-06-18 08:45:43
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