EPISODE RESOURCES

Escape Student Loan Debt 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
02:11 New Borrowing Limits
04:27 New Repayment Plans
06:46 SAVE Plan Deadline
10:18 Consolidation and PSLF Risks
11:41 Parent PLUS Myth Busting
14:46 SAVE Letters and Timing
16:24 PAYE and IBR Updates
19:35 RAP Credit Transfer Rules
21:33 New Loans Change Eligibility
22:38 Borrowing Limits Exemptions
23:09 Lawsuits and Final Takeaways

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