{"id":4365,"date":"2026-06-10T19:06:44","date_gmt":"2026-06-10T19:06:44","guid":{"rendered":"https:\/\/usglobalnews.com\/2026\/06\/10\/july-1-brings-big-student-loan-changes-heres-what-you-need-to-know\/"},"modified":"2026-06-10T19:06:44","modified_gmt":"2026-06-10T19:06:44","slug":"july-1-brings-big-student-loan-changes-heres-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.usglobalnews.com\/?p=4365","title":{"rendered":"July 1 brings big student loan changes. Here&#8217;s what you need to know"},"content":{"rendered":"<div class=\"slug-wrap\">\n<h3 class=\"slug\">\n        <a href=\"https:\/\/www.npr.org\/sections\/education\/\">Education<\/a><br \/>\n    <\/h3>\n<\/div>\n<div class=\"storytitle\">\n<h1>July 1 brings big student loan changes. Here&#8217;s what you need to know<\/h1>\n<\/div>\n<p><!-- END CLASS=\"STORYTITLE\" --><\/p>\n<div id=\"story-meta\" class=\"story-meta has-byline\">\n<div class=\"story-meta__one\">\n<div class=\"story-meta__one-inner\">\n<div class=\"dateblock\">\n    <time datetime=\"2026-06-10T07:30:00-04:00\"><br \/>\n            <span class=\"date\">June 10, 2026<\/span><span class=\"time\">7:30 AM ET<\/span><br \/>\n    <\/time>\n<\/div>\n<\/p><\/div>\n<p><!-- END CLASS=\"STORY-META__ONE-INNER\" -->\n   <\/div>\n<p><!-- END CLASS=\"STORY-META__ONE\" --><\/p>\n<div class=\"story-meta__two\">\n<div id=\"storybyline\" class=\"storybyline-wrap linkLocation\">\n<div class=\"bucketwrap byline\">\n<div class=\"byline-container--block\">\n<div class=\"byline byline--block byline--has-link\" aria-label=\"Byline\">\n<div class=\"byline__photo\">\n      <a href=\"https:\/\/www.npr.org\/people\/349625027\/cory-turner\" rel=\"author\"><br \/>\n        <img decoding=\"async\" src=\"https:\/\/media.npr.org\/assets\/img\/2014\/11\/17\/turner-cory_01_sq-3d2b8438521c294db803b52928d0612152188b28.jpg?s=100&amp;c=85&amp;f=jpeg\" class=\"img\" alt=\"Cory Turner - Square\" data-template=\"https:\/\/media.npr.org\/assets\/img\/2014\/11\/17\/turner-cory_01_sq-3d2b8438521c294db803b52928d0612152188b28.jpg?s={width}&amp;c={quality}&amp;f={format}\" data-format=\"jpeg\"><br \/>\n      <\/a>\n    <\/div>\n<p class=\"byline__name byline__name--block\">\n      <a href=\"https:\/\/www.npr.org\/people\/349625027\/cory-turner\" rel=\"author\"><br \/>\n      Cory Turner<br \/>\n    <\/a>\n  <\/p>\n<\/div><\/div>\n<\/p><\/div>\n<p><!-- END CLASS=\"BUCKETWRAP BYLINE\" -->\n      <\/div>\n<\/p><\/div>\n<p><!-- END CLASS=\"STORY-META__TWO\" -->\n<\/div>\n<p><!-- END ID=\"STORY-META\" CLASS=\"STORY-META HAS-BYLINE\" --><\/p>\n<div id=\"storytext\" class=\"storytext storylocation linkLocation\">\n<div id=\"resg-s1-127244\" class=\"bucketwrap image large\">\n<div class=\"imagewrap has-source-dimensions\" data-crop-type=\"\" style=\"--source-width: 3000;--source-height: 2000\">\n<p>            <img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/3000x2000+0+0\/resize\/1100\/quality\/50\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F52%2Fc5%2F0d2cedd84f708e040b4defbd83e2%2Fnpr-final-image-jenn-liv-2.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/3000x2000+0+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F52%2Fc5%2F0d2cedd84f708e040b4defbd83e2%2Fnpr-final-image-jenn-liv-2.jpg\" class=\"img\" alt=\"A college graduate stands at the start of a multi-path game board. The different paths show ways the student can pay for college.\"><\/p>\n<\/div>\n<div class=\"credit-caption\">\n<div class=\"caption-wrap\">\n    <\/div>\n<p>    <span class=\"credit\" aria-label=\"Image credit\"><br \/>\n        Jenn Liv for NPR<br \/>\n    <\/span>\n<\/div>\n<\/p><\/div>\n<p>On July 1, a host of new student loan changes from last year&#8217;s One Big Beautiful Bill Act will kick in, including the end of a short-lived Biden-era repayment plan, the start of two Republican-designed repayment plans and strict new borrowing limits for some students.<\/p>\n<p>There&#8217;s a lot to parse, and not every change will impact every borrower. So we&#8217;ve designed this story to make it easy to find the guidance that <em>does<\/em> apply to you, or to the borrower in your life.<\/p>\n<p>To get started, click on the student loan status that best describes your situation below:<\/p>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#save\"><strong>You&#8217;re enrolled in the SAVE repayment plan<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#noplans\"><strong>You&#8217;re a current borrower with old (pre-July 1) loans and no plans for new loans<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#futureplans\"><strong>You&#8217;re a current borrower with old (pre-July 1) loans and future loan plans<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#undergrad\"><strong>You&#8217;re a new undergraduate borrower taking out loans after July 1<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#grad\"><strong>You&#8217;re a new grad school borrower taking out loans after July 1<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#currentgrad\"><strong>You&#8217;re in graduate school right now. Do the new loan limits apply to you?<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#pell\"><strong>You&#8217;re enrolling in a short-term job training program and you&#8217;d like help paying for it\u00a0<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#pslf\"><strong>You&#8217;re interested in Public Service Loan Forgiveness (PSLF)<\/strong><\/a><\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><a href=\"https:\/\/www.npr.org\/2026\/06\/10\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#parent\"><strong>You&#8217;re a parent interested in helping your student pay for college<\/strong><\/a><\/li>\n<\/ul>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"save\"><strong><u>You&#8217;re enrolled in the SAVE repayment plan<\/u><\/strong><\/h2>\n<p>After a few contentious years of paused payments and a <a href=\"https:\/\/www.npr.org\/2025\/12\/09\/nx-s1-5638567\/save-plan-student-loan-settlement\" target=\"_blank\">legal battle<\/a> that <a href=\"https:\/\/www.npr.org\/2024\/08\/28\/g-s1-19940\/save-student-debt-plan-supreme-court-biden-administration\" target=\"_blank\">made it all the way to the U.S. Supreme Court<\/a>, the Biden-era Saving on a Valuable Education (SAVE) plan is officially ending.<\/p>\n<p>If you&#8217;re one of the more than 7 million borrowers still enrolled in SAVE \u2014 the most flexible and generous <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#ibr\">income-driven repayment plan<\/a> \u2014 you may have already <a href=\"https:\/\/www.ed.gov\/about\/news\/press-release\/us-department-of-education-announces-next-steps-borrowers-enrolled-unlawful-save-plan\" target=\"_blank\">gotten a notice<\/a> from the U.S. Department of Education warning you that you&#8217;ll have to switch plans soon. Well, you&#8217;ll likely be getting another note from your loan servicer, starting a roughly 90-day clock.<\/p>\n<div id=\"resnx-s1-5835633-100\" class=\"bucketwrap internallink insettwocolumn inset2col \">\n<div class=\"bucket img\">\n                  <a class=\"imagewrap\" id=\"featuredStackSquareImagenx-s1-5690186\" href=\"https:\/\/www.npr.org\/2026\/02\/10\/nx-s1-5690186\/student-loan-default-repayment\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2026\/02\/10\/nx-s1-5690186\/student-loan-default-repayment\"}'><img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2000x2000+500+0\/resize\/100\/quality\/85\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fdd%2F62%2F4fdb31714f52a7685b13ef18ab95%2Floan-default2.jpg\" data-original=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2000x2000+500+0\/resize\/100\/quality\/100\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fdd%2F62%2F4fdb31714f52a7685b13ef18ab95%2Floan-default2.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2000x2000+500+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Fdd%2F62%2F4fdb31714f52a7685b13ef18ab95%2Floan-default2.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" alt=\"Millions of student loan borrowers aren't repaying their loans \u2014 and defaults are up\" loading=\"lazy\"><\/a>         <\/p>\n<div class=\"bucketblock\">\n<h3 class=\"slug\"><a href=\"https:\/\/www.npr.org\/sections\/education\/\">Education <\/a><\/h3>\n<h3><a href=\"https:\/\/www.npr.org\/2026\/02\/10\/nx-s1-5690186\/student-loan-default-repayment\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2026\/02\/10\/nx-s1-5690186\/student-loan-default-repayment\"}'>Millions of student loan borrowers aren&#8217;t repaying their loans \u2014 and defaults are up<\/a><\/h3>\n<\/p><\/div>\n<p><!-- END CLASS=\"BUCKETBLOCK\" -->\n      <\/div>\n<p><!-- END CLASS=\"BUCKET IMG\" -->\n   <\/div>\n<p><!-- END ID=\"RESNX-S1-5835633-100\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>If you don&#8217;t act, the department says it will enroll you in one of the least flexible repayment plans.<\/p>\n<p>Financial aid experts have told NPR that this effort, beginning July 1, to push millions of borrowers into repayment <em>and <\/em>into new plans that will cost more than SAVE, could exacerbate an <a href=\"https:\/\/www.npr.org\/2026\/02\/10\/nx-s1-5690186\/student-loan-default-repayment\" target=\"_blank\">alarming rise in student loan defaults<\/a> \u2013 especially considering that many borrowers enrolled in SAVE precisely because their low incomes qualified them for a $0 monthly payment.<\/p>\n<p>What are your repayment plan options? You&#8217;ve got lots. Keep reading.<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"noplans\"><strong><u>You&#8217;re a current borrower with old (pre-July 1) loans and no plans for new loans<\/u><\/strong><\/h2>\n<p>Whoever you are, whatever your story, whether you enrolled in the SAVE plan or not, you&#8217;re in good company: About 43 million Americans hold about $1.7 trillion in federal student loan debt.<\/p>\n<p>As long as your loans were issued before July 1, and you have no plans to borrow any more money, you&#8217;ll have quite a few repayment options, including one brand new plan. They are:<\/p>\n<div id=\"resg-s1-127261\" class=\"bucketwrap image medium\">\n<div class=\"imagewrap has-source-dimensions\" data-crop-type=\"\" style=\"--source-width: 1418;--source-height: 1416\">\n<p>            <img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1418x1416+0+0\/resize\/1100\/quality\/50\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F26%2Fee%2F77b0b57743cd9248bc957c783a57%2Fjliv-spot1.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1418x1416+0+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F26%2Fee%2F77b0b57743cd9248bc957c783a57%2Fjliv-spot1.jpg\" class=\"img\" alt=\"Three playing cards hang in the air. One with a coin, one with a dollar, and one with a school.\" loading=\"lazy\"><\/p>\n<\/div>\n<div class=\"credit-caption\">\n<div class=\"caption-wrap\">\n    <\/div>\n<p>    <span class=\"credit\" aria-label=\"Image credit\"><br \/>\n        Jenn Live for NPR<br \/>\n    <\/span>\n<\/div>\n<\/p><\/div>\n<h2 class=\"edTag\" id=\"standard\"><strong>Standard Repayment Plan<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> This plan divides your loan balance into equal monthly payments (plus interest, of course) over a 10-year period. If your loans have been <a href=\"https:\/\/studentaid.gov\/loan-consolidation\/\" target=\"_blank\">consolidated<\/a>, they may be spread out over a longer period, up to 30 years.\u00a0<\/li>\n<li><em>The upside:<\/em> Monthly payments are all the same, predictable as the sunrise.\u00a0<\/li>\n<li><em>The downside:<\/em> Payments can be pretty high relative to <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#ibr\">income-based plans<\/a>.\u00a0<\/li>\n<li><em>A note for borrowers:<\/em> Republicans also created a <em>new<\/em> version of this Standard plan, called the <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#tiered\">Tiered Standard Plan<\/a>, but it&#8217;s not available to borrowers with only older loans.\u00a0<\/li>\n<\/ul>\n<h2 class=\"edTag\"><strong>Graduated Repayment Plan<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works: <\/em>Monthly payments start out low, but as the name suggests, they increase every two years and are spread out over a 10-year period. As with the Standard plan, borrowers with consolidated loans may qualify for a longer repayment term.<\/li>\n<li><em>The upside: <\/em>Itallows borrowers to start small, and, ideally, as your payments increase over time, so too does your income and your ability to keep up with them.<\/li>\n<li><em>The downside: <\/em>Over time, your payments could grow, even double in size.<\/li>\n<\/ul>\n<h2 class=\"edTag\"><strong>Extended Repayment Plan<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> Monthly payments can be either fixed <em>or<\/em> graduated, but there&#8217;s one big difference. Payments can last up to 25 years, instead of the common 10 years.\u00a0<\/li>\n<li><em>The upside:<\/em> Twenty-five years makes for smaller monthly payments.<\/li>\n<li><em>The downside:<\/em> You&#8217;re paying a lot in interest over the long run.\u00a0<\/li>\n<\/ul>\n<p>The plans above do not take a borrower&#8217;s income into account when calculating a monthly payment. So-called <strong>income-driven repayment plans<\/strong> do \u2014 and come with a few other perks:<\/p>\n<h2 class=\"edTag\" id=\"ibr\"><strong>Income-Based Repayment (IBR)<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> If your loans are older than July 1, 2014, your monthly payments are based on 15% of your discretionary income and spread over a 25-year period. Anything left after that is forgiven. For loans taken out after July 1, 2014, monthly payments will be based on 10% of discretionary income and spread over 20 years before the remainder is forgiven.<\/li>\n<li><em>The upside:<\/em> Loan forgiveness!<\/li>\n<li><em>The downside:<\/em> Twenty to 25 years repaying a loan is a <em>long<\/em> time.\u00a0\u00a0<\/li>\n<\/ul>\n<h2 class=\"edTag\" id=\"icr\"><strong>Income-Contingent Repayment (ICR)<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> ICR bases monthly payments on a larger share of a borrower&#8217;s discretionary income \u2014 20%. Borrowers also have to make payments over a relatively long period of time \u2014 25 years \u2014 before they can qualify for forgiveness. \u00a0<\/li>\n<li><em>The upside:<\/em> Up to now, for <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#parent\">Parent PLUS borrowers<\/a>, this was often the only income-driven repayment plan they could qualify for.<\/li>\n<li><em>The downside:<\/em> It will generally cost more each month than its fellow income-driven plans.<\/li>\n<\/ul>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>A note for borrowers: <\/em>This is arguably the least generous member of this plan family. It&#8217;s also being phased out by 2028, so, if you do enroll, you&#8217;ll have to change plans again in two years.<\/li>\n<\/ul>\n<h2 class=\"edTag\" id=\"paye\"><strong>Pay As You Earn (PAYE)<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> PAYE&#8217;s terms are similar to what newer IBR borrowers enjoy: Payments are based on 10% of discretionary income over a 20-year period, then the remainder is forgiven.<\/li>\n<li><em>The upside:<\/em> Switching to PAYE, for now, could mean two years of lower payments.<\/li>\n<li><em>The downside:<\/em> Like ICR, Republicans voted to shut down PAYE by July 1, 2028; so you&#8217;ll need to switch plans again within two years.\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n<h2 class=\"edTag\" id=\"rap\"><strong>Repayment Assistance Plan (RAP)<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> RAP bases monthly payments on a borrower&#8217;s adjusted-gross income (AGI). The more you make, the higher your monthly payment. For example, a borrower earning $30,001-$40,000 can expect a monthly payment around $75-$100. Earn $50,001-$60,000 and it jumps to $208.34-$250.\u00a0\u00a0<\/li>\n<li><em>The upside:<\/em> RAP waives any monthly interest that exceeds the plan&#8217;s monthly payment. It also comes with a <a href=\"https:\/\/studentaid.gov\/announcements-events\/big-updates\/definitions#rap\" target=\"_blank\">principal-matching payment<\/a> that makes sure lower-income borrowers see their loan principals go down each month. And, for parents and caregivers, it allows you to slash $50 from your monthly payment for every dependent in your household.<\/li>\n<li><em>The downside:<\/em> Unlike IBR, ICR and PAYE, RAP requires that borrowers be in repayment for 30 years before any remainder is forgiven. By then, there&#8217;ll be little if any debt left. And, a nerdy but important facet: This plan isn&#8217;t indexed for inflation, which means modest income gains could trigger big increases in monthly payments.\u00a0<\/li>\n<li><em>A note for borrowers: <\/em>This is the new kid on the block for legacy borrowers. You can enroll starting July 1.<\/li>\n<\/ul>\n<p>We recommend using the department&#8217;s <a href=\"https:\/\/studentaid.gov\/loan-simulator\/\" target=\"_blank\">Loan Simulator<\/a> \u2014 or <a href=\"https:\/\/studentloanplans.app\/\" target=\"_blank\">maybe this one<\/a>, developed in partnership with <a href=\"http:\/\/freestudentloanadvice.org\/\" target=\"_blank\">The Institute of Student Loan Advisors<\/a>, a nonprofit \u2014 to see which plan makes the most sense for you.<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"futureplans\"><strong><u>You&#8217;re a current borrower with old (pre-July 1) loans and future loan plans<\/u><\/strong><\/h2>\n<p>So, you&#8217;ve already got some loans, and you&#8217;re planning to take out more. The good news\/bad news is you won&#8217;t have a lot of repayment options to choose from.<\/p>\n<p>Any borrower who takes out a loan on or after July 1 will be limited to the two new repayment plans created in the One Big Beautiful Bill Act: <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#rap\">The Repayment Assistance Plan (RAP)<\/a> or the\u2026<\/p>\n<h2 class=\"edTag\" id=\"tiered\"><strong>Tiered Standard Plan<\/strong><\/h2>\n<ul class=\"edTag rte2-style-ul\">\n<li><em>How it works:<\/em> Like the original <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#standard\">Standard<\/a>, the new Tiered plan divides a borrower&#8217;s principal and interest into equal monthly payments over a set period. Again, predictable as the sunrise. What&#8217;s different is that that period of time grows with the size of the debt.\n<ul class=\"edTag rte2-style-ul\">\n<li>Owe less than $25,000 \u2014 repay over 10 years.<\/li>\n<li>Owe $25,000-$49,999 \u2014 repay over 15 years.<\/li>\n<li>Owe $50,000-$99,999 \u2014 repay over 20 years.<\/li>\n<li>Owe $100,000 or more \u2014 repay over 25 years.<\/li>\n<\/ul>\n<\/li>\n<li><em>The upside:<\/em> A longer repayment period for larger balances means smaller payments.<\/li>\n<li><em>The downside:<\/em> Longer repayment periods also mean, well, a long-term relationship with debt.\u00a0\u00a0<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"undergrad\"><strong><u>You&#8217;re a new undergraduate borrower taking out loans after July 1<\/u><\/strong><\/h2>\n<p>Hello, fresh face! Welcome to your higher education adventure. Let&#8217;s be honest, you&#8217;re probably not thinking much about your repayment options yet. You&#8217;re headed to school, and we wish you well.<\/p>\n<p>As you get on your way, here are a few things to keep in mind: Lending limits haven&#8217;t changed for undergraduate borrowers. Dependent\/independent undergrads are still <a href=\"https:\/\/studentaid.gov\/announcements-events\/big-updates\/definitions#loan-limits-exception\" target=\"_blank\">limited to borrowing<\/a>:<\/p>\n<ul class=\"edTag rte2-style-ul\">\n<li>$5,500\/$9,500 in their first year<\/li>\n<li>$6,500\/$10,500 in their second year<\/li>\n<li>$7,500\/$12,500 in the third and subsequent years<\/li>\n<\/ul>\n<p>In total, dependent\/independent undergrads can borrow up to $31,000\/$57,500.<\/p>\n<p>When it does come time for repayment, you&#8217;ll likely have just two options to choose from: Either the <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#rap\">Repayment Assistance Plan<\/a> or the <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#tiered\">Tiered Standard Plan<\/a>.<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"grad\"><strong><u>You&#8217;re a new grad school borrower taking out loans after July 1<\/u><\/strong><\/h2>\n<p>Many of you probably have undergraduate loan debt, though hopefully not too much. And for the moment, you&#8217;re probably not thinking about repayment since you&#8217;re headed back to school. We wish you well!<\/p>\n<div id=\"resg-s1-127263\" class=\"bucketwrap image medium\">\n<div class=\"imagewrap has-source-dimensions\" data-crop-type=\"\" style=\"--source-width: 1144;--source-height: 1142\">\n<p>            <img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1144x1142+0+0\/resize\/1100\/quality\/50\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F07%2F80%2F6db7b9cb47fc8c472da382c75ac2%2Fjliv-spot2.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1144x1142+0+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F07%2F80%2F6db7b9cb47fc8c472da382c75ac2%2Fjliv-spot2.jpg\" class=\"img\" alt=\"A college graduate sits on top of a cube of dice.\" loading=\"lazy\"><\/p>\n<\/div>\n<div class=\"credit-caption\">\n<div class=\"caption-wrap\">\n    <\/div>\n<p>    <span class=\"credit\" aria-label=\"Image credit\"><br \/>\n        Jenn Liv for NPR<br \/>\n    <\/span>\n<\/div>\n<\/p><\/div>\n<p>Still, there are a few things to keep in mind: As of July 1, lending limits change dramatically. Until now, grad students could borrow up to the cost of their program. Your program costs $40,000 a year? You could borrow $40,000 every year. Soon, though, you&#8217;ll be limited to $20,500 a year and a total of $100,000. That&#8217;s a big difference.<\/p>\n<p>Only a small group of so-called &#8220;professional&#8221; degrees will be exempted from these lower limits and qualify instead for $50,000 a year in loans, or $200,000 in all. These degrees fall into 11 categories: chiropractic, clinical psychology, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology and veterinary medicine.<\/p>\n<p>You can learn more about these grad school loan caps <a href=\"https:\/\/www.npr.org\/2026\/05\/19\/nx-s1-5826688\/lawsuit-student-loans-nursing-healthcare-graduate-degree\" target=\"_blank\">at this link<\/a>, including why they have many advocates worrying about an eventual shortage of nurses and other healthcare providers.<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"currentgrad\"><strong><u>You&#8217;re in graduate school right now. Do the new loan limits apply to you?<\/u><\/strong><\/h2>\n<p>This is complicated. The Education Department is making some exceptions for grad school borrowers who are in the middle of their higher education adventures. You may be exempted from the new loan limits if:<\/p>\n<div id=\"resnx-s1-5835633-101\" class=\"bucketwrap internallink insettwocolumn inset2col \">\n<div class=\"bucket img\">\n                  <a class=\"imagewrap\" id=\"featuredStackSquareImagenx-s1-5826688\" href=\"https:\/\/www.npr.org\/2026\/05\/19\/nx-s1-5826688\/lawsuit-student-loans-nursing-healthcare-graduate-degree\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2026\/05\/19\/nx-s1-5826688\/lawsuit-student-loans-nursing-healthcare-graduate-degree\"}'><img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/4480x4480+1120+0\/resize\/100\/quality\/85\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F6a%2F7f%2F048cf98447cf8752b44d14b6a679%2Fgettyimages-2120561540.jpg\" data-original=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/4480x4480+1120+0\/resize\/100\/quality\/100\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F6a%2F7f%2F048cf98447cf8752b44d14b6a679%2Fgettyimages-2120561540.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/4480x4480+1120+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F6a%2F7f%2F048cf98447cf8752b44d14b6a679%2Fgettyimages-2120561540.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" alt=\"A nurse checks a patient's blood pressure.\" loading=\"lazy\"><\/a>         <\/p>\n<div class=\"bucketblock\">\n<h3 class=\"slug\"><a href=\"https:\/\/www.npr.org\/sections\/education\/\">Education <\/a><\/h3>\n<h3><a href=\"https:\/\/www.npr.org\/2026\/05\/19\/nx-s1-5826688\/lawsuit-student-loans-nursing-healthcare-graduate-degree\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2026\/05\/19\/nx-s1-5826688\/lawsuit-student-loans-nursing-healthcare-graduate-degree\"}'>States sue over new student loan limits on certain nursing and healthcare degrees<\/a><\/h3>\n<\/p><\/div>\n<p><!-- END CLASS=\"BUCKETBLOCK\" -->\n      <\/div>\n<p><!-- END CLASS=\"BUCKET IMG\" -->\n   <\/div>\n<p><!-- END ID=\"RESNX-S1-5835633-101\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<ol class=\"edTag rte2-style-ol\">\n<li>You were enrolled by June 30, 2026.<\/li>\n<li>By then, you also have to have received a loan for your program.<\/li>\n<li>And you have maintained enrollment in the same program, at the same school.<\/li>\n<\/ol>\n<p>If you do qualify to be exempted from the new limits, <a href=\"https:\/\/studentaid.gov\/announcements-events\/big-updates\/definitions#loan-limits-exception\" target=\"_blank\">the department&#8217;s website says<\/a> you can lean on the old loan limits \u2014 i.e., borrow up to the cost of your program \u2014 for either three academic years or the difference between how long your program is supposed to last and how long you&#8217;ve already been enrolled, whichever number is smaller.<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"pell\"><strong><u>You&#8217;re enrolling in a short-term job training program and you&#8217;d like help paying for it<\/u><\/strong><\/h2>\n<p>One of the biggest changes going into effect on July 1 is an expansion of the traditional Pell Grant for low-income students to include what&#8217;s known as short-term workforce training.<\/p>\n<p>A Pell Grant is essentially free money from the federal government \u2013 unlike a loan, it does not need to be paid back. For 2026-27, the largest grant a student in a traditional program can qualify for is <a href=\"https:\/\/studentaid.gov\/articles\/dont-miss-out-on-pell-grants\/\" target=\"_blank\">$7,395<\/a>. Awards for short-term training <a href=\"https:\/\/www.ncan.org\/Web\/News\/Workforce-Pell-Youve-Got-Questions-Weve-Got-Some-Answers.aspx\" target=\"_blank\">will likely be prorated<\/a> for the program&#8217;s length.<\/p>\n<div id=\"resnx-s1-5835633-102\" class=\"bucketwrap internallink insettwocolumn inset2col \">\n<div class=\"bucket img\">\n                  <a class=\"imagewrap\" id=\"featuredStackSquareImagenx-s1-5735661\" href=\"https:\/\/www.npr.org\/2026\/03\/11\/nx-s1-5735661\/student-loans-gao-education-department\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2026\/03\/11\/nx-s1-5735661\/student-loans-gao-education-department\"}'><img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2800x2800+700+0\/resize\/100\/quality\/85\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F7b%2F02%2F2c1b550841ee8fd216ee0ecf2558%2Fhbarczyk-npr-educationmonitoring-final.jpg\" data-original=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2800x2800+700+0\/resize\/100\/quality\/100\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F7b%2F02%2F2c1b550841ee8fd216ee0ecf2558%2Fhbarczyk-npr-educationmonitoring-final.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/2800x2800+700+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F7b%2F02%2F2c1b550841ee8fd216ee0ecf2558%2Fhbarczyk-npr-educationmonitoring-final.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" alt=\"Key oversight helping keep student loan records accurate has stopped, a watchdog says\" loading=\"lazy\"><\/a>         <\/p>\n<div class=\"bucketblock\">\n<h3 class=\"slug\"><a href=\"https:\/\/www.npr.org\/sections\/education\/\">Education <\/a><\/h3>\n<h3><a href=\"https:\/\/www.npr.org\/2026\/03\/11\/nx-s1-5735661\/student-loans-gao-education-department\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2026\/03\/11\/nx-s1-5735661\/student-loans-gao-education-department\"}'>Key oversight helping keep student loan records accurate has stopped, a watchdog says<\/a><\/h3>\n<\/p><\/div>\n<p><!-- END CLASS=\"BUCKETBLOCK\" -->\n      <\/div>\n<p><!-- END CLASS=\"BUCKET IMG\" -->\n   <\/div>\n<p><!-- END ID=\"RESNX-S1-5835633-102\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>This expansion of Pell is meant to help workers learn new skills to become, say, a certified nursing assistant or a welder. For the first time, students will be able to get federal help paying for these training programs, which last between eight and 15 weeks.<\/p>\n<p>The first, most important step you need to take to qualify is to fill out the <a href=\"https:\/\/studentaid.gov\/h\/apply-for-aid\/fafsa\" target=\"_blank\">Free Application for Federal Student Aid (FAFSA)<\/a>. You can&#8217;t get a Pell Grant without it.<\/p>\n<p>One huge caveat: This expansion is so new that many current training programs may not qualify. And because it comes with some pretty <a href=\"https:\/\/www.ed.gov\/media\/document\/workforce-pell-grant-final-rule-fact-sheet-114075.pdf\" target=\"_blank\">strict federal guardrails<\/a>, some never will.<\/p>\n<p>It will take states and the federal government some time to figure it all out, so you&#8217;ll need to be patient. And while you wait, fill out the FAFSA!<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"pslf\"><strong><u>You&#8217;re interested in Public Service Loan Forgiveness (PSLF)<\/u><\/strong><\/h2>\n<p>Greetings (aspiring) public servants.<\/p>\n<p>The good news for you is that the program known as Public Service Loan Forgiveness (PSLF) still exists. It&#8217;s a policy quid pro quo: If you pledge to work full-time (at least 30 hours a week) in public service \u2014 as a nurse or police officer or school teacher, etc. \u2014 for 10 years while making 120 monthly payments toward your student loans through a qualifying repayment plan, then whatever debt is left will be forgiven by the U.S. government.<\/p>\n<p>Which plans qualify for PSLF?<\/p>\n<p>In the income-driven category, <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#ibr\">IBR<\/a>, <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#icr\">ICR<\/a>, <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#paye\">PAYE<\/a> and the forthcoming <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#rap\">RAP<\/a> all qualify.<\/p>\n<p>We recommend using the department&#8217;s <a href=\"https:\/\/studentaid.gov\/loan-simulator\/\" target=\"_blank\">Loan Simulator<\/a> to see which plan makes the most sense for you, i.e., which plan has you paying the least over the next decade.<\/p>\n<p>The other question you may have is: Wait! Didn&#8217;t I see stories about how the Trump administration is changing the PSLF rules, maybe making it harder to qualify?<\/p>\n<div id=\"resnx-s1-5835633-103\" class=\"bucketwrap internallink insettwocolumn inset2col \">\n<div class=\"bucket img\">\n                  <a class=\"imagewrap\" id=\"featuredStackSquareImagenx-s1-5591157\" href=\"https:\/\/www.npr.org\/2025\/11\/03\/nx-s1-5591157\/trump-pslf-teachers-loan-forgiveness\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2025\/11\/03\/nx-s1-5591157\/trump-pslf-teachers-loan-forgiveness\"}'><img decoding=\"async\" src=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1594x1594+403+0\/resize\/100\/quality\/85\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F31%2Ff0%2F17fde0aa4369a439c26a51576bed%2Fgettyimages-1089049142.jpg\" data-original=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1594x1594+403+0\/resize\/100\/quality\/100\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F31%2Ff0%2F17fde0aa4369a439c26a51576bed%2Fgettyimages-1089049142.jpg\" data-template=\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/1594x1594+403+0\/resize\/{width}\/quality\/{quality}\/format\/{format}\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F31%2Ff0%2F17fde0aa4369a439c26a51576bed%2Fgettyimages-1089049142.jpg\" data-format=\"jpeg\" class=\"img lazyOnLoad\" alt=\"The Public Service Loan Forgiveness program was created by Congress in 2007 to cancel the student loans of borrowers who spend a decade working in public service.\" loading=\"lazy\"><\/a>         <\/p>\n<div class=\"bucketblock\">\n<h3 class=\"slug\"><a href=\"https:\/\/www.npr.org\/sections\/education\/\">Education <\/a><\/h3>\n<h3><a href=\"https:\/\/www.npr.org\/2025\/11\/03\/nx-s1-5591157\/trump-pslf-teachers-loan-forgiveness\" data-metrics-ga4='{\"category\":\"recirculation\",\"action\":\"story_recirculation_click\",\"clickType\":\"inset box\",\"clickUrl\":\"https:\/\/www.npr.org\/2025\/11\/03\/nx-s1-5591157\/trump-pslf-teachers-loan-forgiveness\"}'>Public workers could be denied loan forgiveness if cities defy Trump, lawsuit alleges<\/a><\/h3>\n<\/p><\/div>\n<p><!-- END CLASS=\"BUCKETBLOCK\" -->\n      <\/div>\n<p><!-- END CLASS=\"BUCKET IMG\" -->\n   <\/div>\n<p><!-- END ID=\"RESNX-S1-5835633-103\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Good memory! Yes. Here&#8217;s <a href=\"https:\/\/www.npr.org\/2025\/11\/03\/nx-s1-5591157\/trump-pslf-teachers-loan-forgiveness\" target=\"_blank\">one of those stories<\/a>.<\/p>\n<p>Effective July 1, the department says it can deny loan forgiveness to workers whose government or nonprofit employers engage in activities with a &#8220;substantial illegal purpose.&#8221; The job of defining &#8220;substantial illegal purpose&#8221; belongs to the education secretary. Last year, the department offered this short list: &#8220;terrorism, child trafficking, and transgender procedures that are doing irreversible harm to children.&#8221;<\/p>\n<p>In late 2025, several large cities, including Boston and Chicago, <a href=\"https:\/\/www.npr.org\/2025\/11\/03\/nx-s1-5591157\/trump-pslf-teachers-loan-forgiveness\" target=\"_blank\">sued over the rule change<\/a>, worried that the administration might try to use a city government&#8217;s politics to exclude its public workers from PSLF. The fight over this rule is very much still playing out, so stay tuned.<\/p>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<div class=\"hr\">\n<hr>\n<\/div>\n<h2 class=\"edTag\" id=\"parent\"><strong><u>You&#8217;re a parent interested in helping your student pay for college<\/u><\/strong><\/h2>\n<p>The Parent PLUS program will see a few key changes take effect July 1. Here&#8217;s what to know:<\/p>\n<ul class=\"edTag rte2-style-ul\">\n<li>First of all, there will be new limits on how much parents can borrow. Parent PLUS loans will be capped at $20,000 per year, <em>per dependent child<\/em>, with an aggregate cap of $65,000 per dependent. That&#8217;s a big change from the previous rules which allowed PLUS loans up to the cost of a program.\u00a0<\/li>\n<li>Repayment is also seeing big changes. Parent PLUS borrowers who take out a loan after July 1 will no longer qualify for any plan that bases their monthly payment on their income. They will only be able to use the new <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#tiered\">Tiered Standard Plan<\/a>. This also means future Parent PLUS borrowers will no longer be able to qualify for either a plan <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#ibr\">that offers forgiveness after a set period of time<\/a> or <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#pslf\">for PSLF<\/a>.\u00a0<\/li>\n<li>For Parent PLUS loans that were taken out before July 1, borrowers&#8217; best bet for a long-term, income-driven plan is <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#ibr\">IBR<\/a>, but only if you consolidate your loans first, make one payment on the less generous <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#icr\">ICR<\/a> plan (which, like <a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan#paye\">PAYE<\/a>, will be phased out in 2028) then switch to IBR. If this is news to you, it may already be too late. The <a href=\"https:\/\/studentaid.gov\/help-center\/answers\/article\/deadlines-eligible-ibr-plan-obbba\" target=\"_blank\">Education Department&#8217;s website<\/a> recommends borrowers start this process at least three months early to make sure their new consolidated loans are issued before the July 1 deadline.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.npr.org\/2026\/06\/09\/nx-s1-5835633\/student-loans-guide-education-changes-repayment-plan\">(Back to the top.)<\/a><\/p>\n<p><em>Edited by: Nicole Cohen and Nirvi Shah<\/em><\/p>\n<\/div>\n<div class=\"tags\">\n<ul>\n<li><a class=\"tag tag--story\" href=\"https:\/\/www.npr.org\/tags\/151345348\/student-loans\">student loans<\/a><\/li>\n<li><a class=\"tag tag--story\" href=\"https:\/\/www.npr.org\/tags\/214564542\/higher-education\">higher education<\/a><\/li>\n<li><a class=\"tag tag--story\" href=\"https:\/\/www.npr.org\/tags\/575390718\/student-loan\">student loan<\/a><\/li>\n<li><a class=\"tag tag--story\" href=\"https:\/\/www.npr.org\/tags\/141862965\/student-loan-debt\">student loan debt<\/a><\/li>\n<li><a class=\"tag tag--story\" href=\"https:\/\/www.npr.org\/tags\/522651100\/education-department\">education department<\/a><\/li>\n<\/ul>\n<\/div>\n<p><!-- END CLASS=\"TAGS\" --><\/p>\n<div class=\"share-tools share-tools--secondary\" aria-label=\"Share tools\">\n<ul>\n<li class=\"share-tools__service share-tools__service--facebook\"><button class=\"fbStorynx-s1-5835633\" data-share-facebook='{\"storyId\": \"nx-s1-5835633\" }' data-metrics-ga4='{\"category\":\"share\",\"action\":\"share\",\"clickName\":\"facebook\"}'><b class=\"share-tools__service-name\">Facebook<\/b><\/button><\/li>\n<li class=\"share-tools__service share-tools__service--flipboard\"><button class=\"storynx-s1-5835633\" data-share-flipboard='{\"storyId\": \"nx-s1-5835633\" }' data-metrics-ga4='{\"category\":\"share\",\"action\":\"share\",\"clickName\":\"flipboard\"}'><b class=\"share-tools__service-name\">Flipboard<\/b><\/button><\/li>\n<li class=\"share-tools__service share-tools__service--email\"><button class=\"share-tools__email-link\" data-story-id=\"nx-s1-5835633\" data-metrics-ga4='{\"category\":\"share\",\"action\":\"share\",\"clickName\":\"email\"}'><b class=\"share-tools__service-name\">Email<\/b><\/button><\/li>\n<\/ul>\n<\/div>\n<p><!-- END CLASS=\"SHARE-TOOLS SHARE-TOOLS-SECONDARY\" ARIA-LABEL=\"SHARE TOOLS\" --><br \/>\n<!-- END ID=\"NEWSLETTER-ACQUISITION-CALLOUT-DATA\" DATA-NEWSLETTER=\"{&amp;QUOT;NEWSLETTERID&amp;QUOT;:&amp;QUOT;ED&amp;QUOT;,&amp;QUOT;TITLE&amp;QUOT;:&amp;QUOT;EDUCATION&amp;QUOT;,&amp;QUOT;MARKETINGHEADER&amp;QUOT;:&amp;QUOT;SIGN UP FOR THE NPR ED NEWSLETTER&amp;QUOT;,&amp;QUOT;FREQUENCY&amp;QUOT;:&amp;QUOT;EVERY WEEK&amp;QUOT;,&amp;QUOT;SHORTDESCRIPTION&amp;QUOT;:&amp;QUOT;GET SHAREABLE INSIGHTS, INNOVATIVE IDEAS AND THE LATEST EDUCATION NEWS, SENT WEEKLY.&amp;QUOT;,&amp;QUOT;STICKYDESCRIPTION&amp;QUOT;:&amp;QUOT;FOR INSIGHTS, IDEAS AND THE LATEST EDUCATION NEWS, SIGN UP FOR THE WEEKLY NPR ED NEWSLETTER.&amp;QUOT;,&amp;QUOT;CONTENTIMAGE&amp;QUOT;:&amp;QUOT;HTTPS:\/\/NPR.BRIGHTSPOTCDN.COM\/58\/28\/B84B9A534EBDA332B2186E9304AA\/EDUCATIONS.PNG&amp;QUOT;,&amp;QUOT;STATICMARKUPDIR&amp;QUOT;:&amp;QUOT;\/BUCKETS\/BLOGS\/ED\/SUBNAV.HTML&amp;QUOT;,&amp;QUOT;BRANDINGDIR&amp;QUOT;:&amp;QUOT;\/BRANDING\/SECTIONS\/EDUCATION\/&amp;QUOT;,&amp;QUOT;BRANDINGLINK&amp;QUOT;:&amp;QUOT;HTTPS:\/\/WWW.NPR.ORG\/SECTIONS\/EDUCATION\/&amp;QUOT;,&amp;QUOT;RECAPTCHASITEKEY&amp;QUOT;:&amp;QUOT;6LCDN9IZAAAAAOHT985BJJBZJKBJKSXDXK3GEKST&amp;QUOT;}\" --><br \/>\n<!-- END ID=\"CALLOUT-END-OF-STORY-MOUNT\" --><\/p>\n<div id=\"callout-end-of-story-mount-piano-wrap\" class=\"callout-end-of-story-mount-piano-wrap\">\n<!-- END ID=\"CALLOUT-END-OF-STORY-MOUNT-PIANO\" CLASS=\"CALLOUT-END-OF-STORY-MOUNT-PIANO\" -->\n<\/div>\n<p><!-- END ID=\"CALLOUT-END-OF-STORY-MOUNT-PIANO-WRAP\" CLASS=\"CALLOUT-END-OF-STORY-MOUNT-PIANO-WRAP\" --><br \/>\n<!-- END ID=\"END-OF-STORY-RECOMMENDATIONS-MOUNT-PIANO\" CLASS=\"RECOMMENDED-STORIES RECOMMENDED-STORIES-PIANO\" ARIA-LABEL=\"RECOMMENDED STORIES\" --><br \/>\n<!-- END ID=\"END-OF-STORY-RECOMMENDATIONS-MOUNT\" CLASS=\"RECOMMENDED-STORIES\" ARIA-LABEL=\"RECOMMENDED STORIES\" --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Education July 1 brings big student loan changes. Here&#8217;s what you need to know June 10, 20267:30 AM<\/p>\n","protected":false},"author":0,"featured_media":4367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"_links":{"self":[{"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4365"}],"version-history":[{"count":0,"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=\/wp\/v2\/media\/4367"}],"wp:attachment":[{"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.usglobalnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}