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Student loan borrowers will face the biggest overhaul to the federal student loan system in decades, starting July 1. More than 43 million people owe $1.6 trillion in federal student loans, and many are still adjusting to changes that have unfolded since payments resumed following the pandemic-era pause.

Numerous changes were made with the passage of the One Big Beautiful Bill Act in July 2025. Primarily, new borrowing limits are being instituted, repayment options are being narrowed, and Parent PLUS loans must be restructured to ensure certain benefits remain intact.

Read more: A complete timeline of federal student loan changes: Every key date from 2026 to 2028

The latest modifications aren't as drastic as the resumption of repayments from 2023 through 2025. Still, the new borrowing limits and repayment guidelines must be addressed, in some cases with a looming deadline in the next few days.

Here are the eight federal student loan priorities to consider before July 1.  

Read more: How to pay off student loans quickly: 8 strategies that work

More than 7 million borrowers were enrolled in the Saving on a Valuable Education (SAVE) plan, expecting eventual loan forgiveness. After a legal challenge, the program has terminated, and those enrolled in SAVE must choose a new repayment plan within 90 days. If not, they will be automatically enrolled in a plan without being able to choose a replacement that may best suit their ability to repay. 

Read more: The SAVE plan is gone. Here's what student loan borrowers need to do next.

July 1 also marks new limitations on repayment options. Two payment plans are being phased out through July 1, 2028: the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans. 

Borrowers will have two options:

Standard Repayment Plan allows repayments over 10 to 25 years, depending on the amount borrowed.

Repayment Assistance Plan (RAP) provides an income-based payoff based on 1% to 10% of your adjusted gross income (AGI). There is a minimum repayment due of $10 per month, but no maximum monthly payment limit. Forgiveness is allowed after 30 years.

Read more: IBR vs. RAP: Which federal repayment plan should you pick?

If a student is seeking Public Service Loan Forgiveness, Parent Direct PLUS loans must be restructured into a Direct Consolidation Loan before July 1, 2026. You must also enroll in an income-driven repayment (IDR) plan before the same deadline. 

If you do not consolidate Parent PLUS loans before the deadline, income-driven repayment plans will not be an option; only standard repayment plans will be available. 

If you are current on payments on a Parent PLUS loan initiated before July 1, 2026, you may be able to remain on the plan until your loan servicer moves you to a new one by July 1, 2028. 

Loans begun on or after July 1, 2026, will have new borrowing limits:

New Parent PLUS loans will have a $20,000 maximum per year per student, or up to $65,000 per student in a parent's lifetime.

Graduate student loans will be limited to $20,500 annually, to a lifetime total of $100,000.

Professional student loans will have a $50,000 limit, with a lifetime total of $200,000.

If your Parent PLUS loan was funded before July 1, 2026, you can continue your loan for up to three more years, or until the program ends, without the new borrowing limits. 

Read more: Parent PLUS loan deadline: Why June 30 could be the most important date of 2026

If you are behind on payments, you may qualify for an Unemployment Deferment or an Economic Hardship Deferment, but be warned: These programs are being eliminated for loans initiated on or after July 1, 2027.

Forbearance will be limited to a maximum of nine months every two years for loans funded on or after July 1, 2027. 

FAFSA forms still must be completed to apply for financial aid.

Private education loans will remain available to cover financial aid shortfalls. 

Studentaid.gov remains the best way to view your current federal loans and discover your options. 

Get ahead of the biggest student loan changes arriving this summer

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Student loan rules are set to change in 2026. Here's what borrowers need to know about repayment, forgiveness, and federal policy changes.

Changes are coming to federal student loans on July 1. Get your questions answered here.

Consolidating federal loans after July 1 comes with real trade-offs. Here's how missing the deadline affects your repayment plan options.

Federal loan repayment is being overhauled: SAVE is ending, and two new plans are coming. Here's what borrowers need to know before the deadline.

The GOP law makes sweeping changes to federal student loans. See what existing and new borrowers should expect.