Busting Student Loan Myths Before July 1st

EPISODE RESOURCESEscape Student Loan Debt PodcastJuly 1 Deadline Changes, SAVE Ending, New Borrowing Caps, and Myth-Busting In 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 Overview02:11 New Borrowing Limits04:27 New Repayment Plans06:46 SAVE Plan Deadline10:18 Consolidation and PSLF Risks11:41 Parent PLUS Myth Busting14:46 SAVE Letters and Timing16:24 PAYE and IBR Updates19:35 RAP Credit Transfer Rules21:33 New Loans Change Eligibility22:38 Borrowing Limits Exemptions23:09 Lawsuits and Final TakeawaysSupport the show