Student Loan Impact Tracker

July 1 Policy Shifts and Repayment Changes

• 🔥 SAVE to RAP Transition: Borrowers remaining on SAVE after July 1, 2026 will be moved to the...

• Over 60 Democratic lawmakers are pressing the Trump administration to cancel debt for eligible borrowers under PSLF and disability discharge before...

The Education Department released updated online guidance summarizing July 1 changes to federal student loan disbursement, repayment programs, and...

More than 60 congressional Democrats, led by Sen. Warren, are demanding the Education Department act on a record default crisis hitting nearly 9...

• SAVE borrowers face July 1 notices requiring a switch within 90 days or automatic placement in RAP, extending forgiveness to 360 payments for many
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State Coalition Challenges Borrowing Caps

• 🔥 Oregon Joins 26-State Lawsuit: Oregon AG joined 25 other states suing to block July 1 caps limiting...

A coalition of 26 states is suing to block new federal loan caps taking effect July 1, arguing the limits will worsen shortages in healthcare and...

Democratic lawmakers led by Senator Elizabeth Warren are urging the Education Department to speed up existing debt relief programs and extend the...

• SAVE eliminated along with Grad PLUS and prior IDR plans on July 1, 2026
• New RAP plan replaces them with fresh payment math
• 15% wage garnishment restarts for defaulted loans
• Take the 5 key actions now to avoid payment spikes and lost options

• Act during the pause: Garnishment and Treasury offsets are paused until mid-2026; exit default now to avoid the 15% wage hit restarting.
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Federal student loan rates jump for loans disbursed July 1, 2026–June 30, 2027: 6.52% for undergraduates, 8.07% for graduate students, and 9.07% for...

Borrowers with loans disbursed before July 1 retain access to legacy IDR plans like IBR, but new disbursements force RAP or Tiered Standard only.

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Black graduates face default rates five times higher than White peers, with advocates urging an end to wage garnishment that hits them hardest.
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• 60+ Democrats led by Warren urge McMahon to cancel debt for PSLF, disability, and borrower defense borrowers
• Call to stop defaulted account...

New Borrowing Limits Effective July 1

• 🔥 Professional School Caps: The One Big Beautiful Bill Act limits direct unsubsidized loans for...

New federal caps effective July 1 limit grad loans to $20,500 annually and $100,000 total, eliminating Grad PLUS access for new borrowers.

• UCLA...

Borrowers have until June 30 to disburse new federal Direct Loans and retain access to multiple income-driven plans; any loan after July 1 gets only...

Starting July 1, 2026, the One Big Beautiful Bill Act imposes hard borrowing limits and restricts repayment options for new federal loans.

• Parent...

Seniors with defaulted federal student loans risk losing up to 15% of Social Security benefits via automatic garnishment restarting July 1, 2026, on...

• Log into studentaid.gov now to confirm your current plan and eligibility before options shift after July 1
• SAVE borrowers: switch to IBR or...