EPISODE RESOURCES

New Money New Problems Podcast


July 1 Deadline Changes, SAVE Ending, New Borrowing Caps, and Myth-Busting

In this episode we explore major federal student loan changes tied to the key July 1 deadline and dispels common myths about what's to come. Key updates include new borrowing caps for Parent PLUS loans and the important distinction between a "standard" graduate student and a "professional" student. A new income-driven option, the Repayment Assistance Plan, arrives July 1, while PAYE and ICR will be phased out by July 1, 2028. Parent PLUS borrowers can lose access to IDR and PSLF after July 1 without required steps, and any new Parent PLUS borrowing after July 1 removes IDR/PSLF eligibility. SAVE is ending, with a 90-day window starting July 1 to choose a new plan. Consolidation must be completed and disbursed before July 1, and unnecessary consolidation can erase forgiveness credit. The episode also covers plan-switching credit rules, exemptions for already-enrolled students from new caps, and pending lawsuits challenging PSLF employer restrictions and graduate borrowing limits.

00:00 July 1st Changes Overview

01:45 New Borrowing Limits

04:01 New Repayment Plans

05:15 Parent PLUS PSLF Cutoff

06:20 SAVE Plan Ending

07:05 Consolidation Deadline

07:30 PSLF Employer Rule

08:48 Myths After Break

10:11 Parent PLUS Consolidation

11:16 Avoid Unneeded Consolidation

13:16 SAVE Letters Explained

14:54 PAYE Eligibility Update

17:05 IBR Hardship Removed

18:05 Switching Plan Credits

20:03 New Loans Change Options

21:08 Borrowing Limits Exemptions

21:39 Lawsuits And Hope

23:45 Wrap Up And Next Steps