Student Loan Payments Resume Tomorrow : 5 Things You Need to Know By July 1
If you’ve been breathing easy under the SAVE plan, it’s time to sit up. Starting tomorrow, July 1, 2026, the federal student loan landscape is getting a massive overhaul. Thanks to the “One Big Beautiful Bill” Act, the rules of the game are changing: and your monthly bill is likely next.
Here are the five things you need to handle before the clock strikes midnight.
1. The SAVE Plan is Officially Retired
The Biden-era SAVE plan is being dismantled. If you’re currently enrolled, don’t panic, but do check your inbox. You’ll be receiving a notice tomorrow explaining that your current plan is ending.
2. Meet Your New Options: RAP and Tiered Standard
For most, the choice is now between the Repayment Assistance Plan (RAP) and the Tiered Standard Plan. RAP is the only remaining income-driven option for new loans, but there’s a catch: it requires 30 years of payments before forgiveness: a significant jump from previous plans.
3. The 90-Day “Grace” Window
You have roughly 90 days to manually select a new plan. If you miss this window, you’ll be automatically moved to the Tiered Standard Plan. For many, this means a much higher monthly payment that doesn’t adjust with your income.
4. New Borrowing Caps Are Here
Taking out new loans for grad school? Grad PLUS loans are a thing of the past for new borrowers. Tight annual caps (around $20,500) and lifetime limits are now the law of the land. Parent PLUS loans are also capped at $20,000 per year.
5. Check Your PSLF Status
If you’re tracking toward Public Service Loan Forgiveness, ensure your new plan choice remains “qualifying.” Moving to a non-standard plan during this transition could reset your progress if not handled correctly.
Penny’s Point: With payments likely shifting, now is the time to tighten the belt elsewhere. Check out the latest deals on Brownstone Marketplace to save on your daily essentials while you navigate these new monthly costs.
