{"id":903577,"date":"2026-06-30T17:54:41","date_gmt":"2026-06-30T17:54:41","guid":{"rendered":"https:\/\/www.europesays.com\/us\/903577\/"},"modified":"2026-06-30T17:54:41","modified_gmt":"2026-06-30T17:54:41","slug":"major-federal-student-loan-changes-take-effect-july-1-heres-what-houston-area-borrowers-need-to-know","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/903577\/","title":{"rendered":"Major federal student loan changes take effect July 1. Here\u2019s what Houston-area borrowers need to know"},"content":{"rendered":"<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">Millions of current and future student loan borrowers will see major changes beginning July 1 as a sweeping overhaul of the federal student loan system takes effect.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">The changes, included in the One Big Beautiful Bill Act, impact repayment plans, borrowing limits and loan forgiveness programs. While some provisions affect only new borrowers, others could impact families planning to pay for college in the coming years.<\/p>\n<ul class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 etvbxt font_openSans articleList\">\n<li class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Stack-vJ7SwH7U__StackBase-sc-1m5bkhd-0 evEXvX dsnUCb\"\/><\/ul>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">One of the biggest changes affects Parent PLUS loans, which parents can use to help pay for a child\u2019s college education.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">According to Betsy Mayotte, president of the Institute of Student Loan Advisors (TISLA), parents were previously able to borrow up to the full cost of attendance.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">Starting July 1, new Parent PLUS loans will be capped at $20,000 per dependent undergraduate student per year, with a lifetime borrowing limit of $65,000 per student.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">Mayotte says the new limits could force some families to seek private student loans, which often don\u2019t provide the same borrower protections as federal loans.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">\u201cThat might mean having to go to private loans to finish paying for the degree. And if you can\u2019t qualify for a private loan, you might not be able to complete your degree, which has me very, very worried,\u201d Mayotte said.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">The legislation also changes repayment options for new federal student loan borrowers.<\/p>\n<ul class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 etvbxt font_openSans articleList\">\n<li class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Stack-vJ7SwH7U__StackBase-sc-1m5bkhd-0 evEXvX dsnUCb\"\/><\/ul>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">For students who take out federal loans after July 1, the Repayment Assistance Plan (RAP) will become the only income-driven repayment plan available. Parent PLUS borrowers will not be eligible for RAP.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">New borrowers will also have the option of a standard repayment plan with fixed monthly payments over terms ranging from 10 to 25 years, depending on the amount borrowed.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">The changes also affect borrowers enrolled in the SAVE repayment plan, which is being phased out under the new law.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">Mayotte says borrowers should take time to educate themselves about the new rules before choosing a repayment plan.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">She recommends understanding the costs of each repayment option, both in the short and long term.<\/p>\n<p class=\"Box-_wrDxHtU__Box-sc-10sa3ie-0 Text-nO2aZ44r__TextBase-sc-s2hv5x-0 jJNfBD fSvavs article-text\">\u201cWhen in doubt,\u201d she says, borrowers should visit StudentAid.gov to review the latest information and compare repayment options.<\/p>\n<p>Copyright 2026 by KPRC Click2Houston &#8211; All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"Millions of current and future student loan borrowers will see major changes beginning July 1 as a sweeping&hellip;\n","protected":false},"author":3,"featured_media":903578,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5130],"tags":[2871,4345,14231,6459,15689,36828,358,3187],"class_list":["post-903577","post","type-post","status-publish","format-standard","has-post-thumbnail","category-houston","tag-college","tag-houston","tag-loans","tag-money","tag-student","tag-student-loans","tag-texas","tag-tx"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116840344371034429","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/903577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=903577"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/903577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/903578"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=903577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=903577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=903577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}