Overview

• Interest will begin accruing on SAVE forbearance balances on August 1, ending the zero-percent status granted during litigation.
• By July 1, 2028, borrowers must switch to either the standard repayment plan or the new income-driven Repayment Assistance Plan.
• Borrowing limits set to take effect July 1, 2026, cap Parent PLUS at $20,000 per year and $65,000 total, master’s Grad PLUS at $20,500 per year and $100,000 total, and professional Grad PLUS at $50,000 per year and $200,000 total.
• The Repayment Assistance Plan caps payments at 1–10 percent of discretionary income and defers forgiveness eligibility until 30 years of qualifying payments.
• Advocates warn the rapid changes risk borrower confusion and rising defaults and urge people to seek assistance from nonprofit and federal resources.