Federal student loan borrowers will face several significant changes effective July 1, resulting from the implementation of the One Big Beautiful Bill Act (P.L. 119-21). For borrowers with existing federal loans, repayment plans made available under the Biden administration – including the Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE) and other previous income-based and income-contingent repayment plans – will eventually be phased out, requiring many borrowers to select new repayment options. Meanwhile, borrowers planning to take out new loans after July 1 will need to consider the implications of new federal borrowing caps and the elimination of the Graduate PLUS loan program. This flowchart provides an overview of the new repayment options.
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