If you have federal student loans, major changes to repayment plans are on the horizon.
Beginning July 1, 2026, new federal rules will reshape how student loans are repaid, and experts say borrowers should start preparing now to avoid surprises.
For many borrowers, student debt already carries a heavy burden. UNLV graduate student Emmett Lovett, who is working toward a master’s degree in clinical mental health counseling, says he has nearly six figures in student loans.
“About $90,000,” Lovett said. He added that if he pursues a doctoral degree, his debt could grow even more: “If I go on to get a PhD, that’s six more years."
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Chip Lupo, writer and analyst with WalletHub. explained that the new rules will phase out many existing repayment plans for new loans beginning in mid-2026, except for undergraduates.
All new federal student loans will be placed under a new system called the Repayment Assistance Program, which is income-driven and designed to simplify repayment and reduce the risk of overwhelming debt.
Under the new law, graduate students will face new borrowing limits, with a proposed cap of $20,500 per year and a total of $100,000 for their degree.
While undergraduate borrowing limits will remain unchanged, the elimination of the popular Grad PLUS loan for future borrowers could affect students seeking advanced degrees.
For current borrowers with loans taken out before 2026, there is time to adjust. Lupo recommends reviewing existing repayment plans, comparing options, and keeping track of important deadlines to avoid unexpected challenges as the new rules take effect.
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Despite the uncertainty, Lovett remains focused on his goals.
“I’m constantly asking my professors how I can find help to pay for school,” he said.
The goal of the new law is to make student loan repayment more manageable for borrowers. But whether you’re repaying existing loans or planning to borrow in the future, the advice remains the same: Review your loans early, confirm your repayment plan, and stay informed about upcoming changes.
This story was originally published by Shakeria Hawkins with the Scripps News Group in Las Vegas.
