 |
Hi there,
Two weeks. That’s how long we have until major changes are implemented in the student loan system. While we have worked to raise awareness about this overhaul in recent months, the information is undeniably complex, and unfortunately, the Department of Education and loan servicers have failed to communicate these critical updates to the millions of borrowers who will be affected.
As we approach July 1, we are calling on Congress to step up and do what’s right and necessary: put pressure on the White House to pause student loan payments and interest for all borrowers while granting credit toward Public Service Loan Forgiveness and Income-Driven Repayment.
TELL CONGRESS: URGE THE WHITE HOUSE TO PAUSE STUDENT LOAN PAYMENTS In case you missed it, here’s what you need to know before July 1 arrives:
July 1, 2026, serves as a critical date moving forward: Your eligibility and available repayment options will now depend entirely on whether your loans were issued or consolidated before, on, or after this date.
If you are currently enrolled in the SAVE Plan:– You do not have to exit the SAVE plan just yet. Loan servicers will begin emailing borrowers on July 1 with a formal 90-day notice requiring them to exit SAVE.- If you’ve recently received emails from Federal Student Aid, those are not the official notices. Those are just warnings about what’s to come. – Once you receive your notice, you will have 90 days to apply for a new plan. You can do so here: https://studentaid.gov/idr/- If you do not take action, you will be placed into a version of the Standard Plan.
General changes to the repayment system:– Borrowers whose loans were all issued before July 1, 2026, retain access to existing plans, including the new Repayment Assistance Plan (RAP).- If any loan is issued or consolidated on or after July 1, 2026, your options will be limited to the Tiered Standard Plan and RAP.- Parent Plus loan holders with any new or newly consolidated loans will only have access to the new Tiered Standard Plan and will lose access to Public Service Loan Forgiveness. To learn more about these changes and other changes coming to the student loan system, check out our latest blog post.
The scale of these changes is unprecedented, affecting 45 million Americans. Urge Congress to pressure the White House to pause student loan payments until implementation is complete and clear guidance is provided to all borrowers on their next steps and loan status.
In community, Team SDCC Student Debt Crisis Center (SDCC) is a 501(c)(3) nonprofit that centers the needs and voices of borrowers, and partners with allies, to impact public policy and end the student debt crisis. We are a people-powered movement representing over 2 million supporters. Donations to SDCC are tax deductible to the full extent of the law.
