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New Student Loan Changes Set for July 2026

1/12/2026

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Summary

Story summary

The U.S. Department of Education announced that changes to federal student loan repayment plans will take effect on July 1, 2026.
The new Repayment Assistance Program will simplify repayment and cap graduate-loan borrowing at $20,500 per year.
Current borrowers should review their plans to avoid surprises.
The resumption of collections on defaulted loans has begun, impacting millions.

History

Historical Context

The Higher Education Act of 1965, signed into law on November 8, aimed to enhance educational resources and increase student access to financial aid. This legislation established federal student loan programs, contributing to over $100 billion in federal loans by 2020. Ongoing reforms in repayment plans reflect the government's efforts to address the complexities of student debt affecting millions of borrowers today.

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Story summary

The U.S. Department of Education announced that changes to federal student loan repayment plans will take effect on July 1, 2026.
The new Repayment Assistance Program will simplify repayment and cap graduate-loan borrowing at $20,500 per year.
Current borrowers should review their plans to avoid surprises.
The resumption of collections on defaulted loans has begun, impacting millions.

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