What Changed for Student Loan Borrowers on July 1, 2026

The biggest overhaul of federal student loans in a generation just took effect. Under the One Big Beautiful Bill Act, borrowers who take out federal loans on or after July 1, 2026 face fewer repayment options, hard borrowing caps, and slightly higher interest rates.While many of these changes apply to new loans going forward, some borrowers do have choices to make. For example, borrowers in the SAVE forbearance will have to start making decisions to change repayment plans. It's important to remember that current borrowers keep their existing fixed interest rates and access to legacy plans like IBR — but anyone borrowing for the coming school year is entering a very different system.