Starting on July 1, 2026, the Education Department (ED) is rolling out major changes to the federal student loan repayment system.
Two massive shifts will be happening at once: the repayment changes made in the 2025 reconciliation law go into effect, and the millions of borrowers still enrolled in the SAVE Plan will start receiving official notices of the date by which they must enroll in another plan. Borrowers leaving the SAVE Plan will be left with fewer, more expensive options. This transition comes as 45% of borrowers say they have had to make tradeoffs between covering their basic needs and staying current on student loan payments.
We are also deeply concerned that the ED is not prepared to smoothly manage such a major transition. Nearly half (48%) of borrowers have said they are facing long wait times to speak to or receive a response from a loan servicer when they reached out for assistance.
The best thing borrowers can do is stay informed and be proactive: make sure they have access to their loan account, know which plan they’re in, and who their servicer is, and bookmark resources such as ED’s repayment calculator to compare plan options.
