Key facts
- Changes to federal student loan repayment plans and graduate loan limits take effect July 1.
- The SAVE repayment plan is being eliminated.
- Borrowers enrolled in the SAVE plan are receiving notices to switch to a new plan.
- Loan servicers will contact borrowers in waves.
- Some borrowers have until May 2027 to transition to a new plan.
- New caps are being implemented on graduate student loans.
- New caps are being implemented on Parent PLUS loans.
- These changes are expected to increase monthly payments for many borrowers.
Federal student loan borrowers are facing substantial changes to their repayment plans and loan limits beginning July 1. A key development is the elimination of the SAVE (Saving on a Valuable Education) repayment plan. Borrowers enrolled in the SAVE plan are being notified by loan servicers to transition to a different repayment strategy. These notifications are being sent out in waves, and some borrowers will have an extended period, with a deadline of May 2027, to switch to a new plan.