Student Loan Updates! | PAYE Forgiveness, New(ish) Consolidation Rules + More

EPISODE RESOURCESRISE Committee DocumentFederal Student Loan Updates: RISE Committee Proposals, New Borrowing Limits, Parent PLUS Deadlines, and Forgiveness ProcessingIn this episode, we highlight the major proposed changes—including creation of the Repayment Assistance Plan, removal of ICR and PAYE, changes to SAVE, limits on graduate and undergraduate borrowing, and restrictions on Parent PLUS—that are in a public comment period tied to rules stemming from the “One Big Beautiful Bill Act.”Key items discussed from the RISE committee include new borrowing caps effective for programs starting July 1, 2026 or later.We also explain consolidation-credit rules: after periods where consolidation used the highest-count loan (Biden-era), then a weighted average, then a reset-to-zero approach, the RISE committee recommends returning to weighted average (though rules are not yet finalized and borrowers should be cautious). Additonal topics include spousal/joint consolidation loans, Parent PLUS strategies and deadlines00:00 Student Loan News You Need This Week (Intro)00:17 Tonight’s One-Take Episode + What’s on the Agenda01:44 RISE Committee Rules: Public Comment & What’s Changing02:51 New Grad/Undergrad Borrowing Limits (Starting July 2026)07:00 Parent PLUS Borrowing Caps: New Annual & Lifetime Limits07:21 Consolidation Credit Update: Weighted Average vs. Reset to Zero10:04 Spousal Consolidation Loans: Separation & PSLF Credit Fixes12:23 Default/Garnishment Payments Potentially Counting Toward Forgiveness13:03 Parent PLUS Strategy & July 1 Deadlines (IDR/PSLF Access)15:34 ICR & PAYE Forgiveness Processing Restarts + 2026 Tax Bomb18:25 Wrap-Up: What to Watch Next & When the Next Update Drops