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
