Student loan rules change July 1, 2026: SAVE ends, RAP
Heads up if you're dealing with student loans: starting July 1, 2026, the rules are getting a major shakeup.
The SAVE repayment plan is ending, and new options like the Repayment Assistance Plan (RAP) and Tiered Standard Plan are coming in, both with stricter terms.
Borrowing limits for graduate students and parents will be tighter, while Pell Grants will now help cover short-term job training programs.
Graduate and Parent PLUS caps lowered
If you already have loans, you can switch to RAP (which means 30 years of payments before possible forgiveness).
New borrowers on July 1, 2026 face lower borrowing caps on graduate and Parent PLUS loans and will have fewer repayment options on future loans.
Everyone's encouraged to use loan simulators to figure out what works best: Staying informed is key as these changes roll out.