Student Loan System Overhaul Begins July 1 | Texas News

Big changes are coming to federal student loans—starting July 1st, millions of borrowers face new repayment rules and caps. Existing plans are disappearing, and you could be auto-enrolled in a higher-payment standard plan unless you act. New borrowers now choose between income-driven plans or tiered standard options, designed to simplify repayment. Current borrowers can stay put or switch, but new loans post-July 1st are locked into these two new paths. Plus, graduate and parent PLUS loans now have strict borrowing caps—master’s students max out at $20,500/year and $100,000 total, while parent loans face tighter yearly and lifetime limits. This overhaul aims to create a clearer, more manageable system for future borrowers and reshape existing debt structures. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/eab46bc0c915039c