NewsNBC 6 South Florida (WTVJ) – Local NewsJuly 2, 2026Miami-Dade
New Federal Student Loan Repayment Rules Starting July 1
New federal regulations taking effect July 1 will limit student loan repayment options and require millions of borrowers to select a new plan. Borrowers currently in the SAVE plan must act by October 1 to avoid automatic enrollment in a standard plan, which may increase monthly payments.
Read the full story at NBC 6 South Florida (WTVJ) – Local NewsWhy It Matters
Millions of federal student loan borrowers face potential increases in monthly payments if they do not select a new repayment plan by the October 1 deadline.
Key Facts
- New federal repayment rules take effect on July 1.
- Approximately 7 million borrowers currently in the SAVE plan must select a new option within 90 days of notification.
- Borrowers who do not select a new plan by October 1 will be automatically enrolled in a standard repayment plan.
- New federal student loan borrowers are limited to two options: the Repayment Assistance Plan (RAP) or the Tiered Standard Plan.
- New Parent PLUS loan borrowers are limited to only the Tiered Standard Plan.
- The Income-Based Repayment (IBR) plan remains available.
- The Repayment Assistance Plan (RAP) bases payments on adjusted gross income rather than discretionary income.
- The Tiered Standard Plan features monthly payments that increase over time on a fixed schedule.
- Income-Contingent Repayment and Pay As You Earn (PAYE) plans are scheduled to be phased out by 2028.
- Borrowers can use pay stubs from the last 90 days as proof of income if their earnings have changed since their last tax return.