What to know ahead of the July 1 student loan shakeup

Starting July First, millions of student loan borrowers face substantial changes, according to Axios. The SAVE Plan — which has been in legal limbo for years — is being dismantled. Borrowers enrolled in SAVE will receive notices to choose a new repayment plan within ninety days, or they'll be automatically enrolled in the standard plan. Replacing it: the Tiered Standard plan, which offers fixed payments over 10 to 25 years, and the Repayment Assistance Plan, which ties payments to income and dependents. Unlike older income-driven plans, RAP has no monthly payment cap. Parent PLUS borrowers face the biggest squeeze. New Parent PLUS loans can only use the Tiered Standard plan — no income-driven options. They're also capped at twenty thousand dollars per year and sixty-five thousand dollars total per dependent. Graduate students face tighter limits too: twenty thousand five hundred dollars annually and one hundred thousand dollars lifetime. Professional students in fields like pharmacy, dentistry, and law get a higher ceiling: fifty thousand dollars per year and two hundred thousand dollars total. The bottom line: review your repayment options now. These changes take effect in just days.

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