Busting Myths Before the July 1 Deadline

EPISODE RESOURCESNew Money New Problems PodcastJuly 1 Deadline Changes, SAVE Ending, New Borrowing Caps, and Myth-BustingIn this episode we explore major federal student loan changes tied to the key July 1 deadline and dispels common myths about what's to come. Key updates include new borrowing caps for Parent PLUS loans and the important distinction between a "standard" graduate student and a "professional" student. A new income-driven option, the Repayment Assistance Plan, arrives July 1, while PAYE and ICR will be phased out by July 1, 2028. Parent PLUS borrowers can lose access to IDR and PSLF after July 1 without required steps, and any new Parent PLUS borrowing after July 1 removes IDR/PSLF eligibility. SAVE is ending, with a 90-day window starting July 1 to choose a new plan. Consolidation must be completed and disbursed before July 1, and unnecessary consolidation can erase forgiveness credit. The episode also covers plan-switching credit rules, exemptions for already-enrolled students from new caps, and pending lawsuits challenging PSLF employer restrictions and graduate borrowing limits.00:00 July 1st Changes Overview01:45 New Borrowing Limits04:01 New Repayment Plans05:15 Parent PLUS PSLF Cutoff06:20 SAVE Plan Ending07:05 Consolidation Deadline07:30 PSLF Employer Rule08:48 Myths After Break10:11 Parent PLUS Consolidation11:16 Avoid Unneeded Consolidation13:16 SAVE Letters Explained14:54 PAYE Eligibility Update17:05 IBR Hardship Removed18:05 Switching Plan Credits20:03 New Loans Change Options21:08 Borrowing Limits Exemptions21:39 Lawsuits And Hope23:45 Wrap Up And Next Steps