What to know about the major student loan changes coming July 1

MoneyWatch A major student loan overhaul takes effect July 1. Here's what borrowers need to know. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Mary Cunningham Mary Cunningham Reporter, MoneyWatch Mary Cunningham is a reporter for CBS MoneyWatch. She previously worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program. Read Full Bio Mary Cunningham June 1, 2026 / 3:09 PM EDT / CBS News Add CBS News on Google Major changes are coming to the student loan landscape starting July 1 that will limit how much Americans can borrow and their repayment options.Those changes are a result of the One Big Beautiful Bill Act, which President Trump signed into law last year. The Education Department has framed the overhaul as a way to streamline the student loan system, which currently consists of seven repayment plans, and rein in student loan debt, which stands at almost $1.9 trillion, according to LendingTree."These are the most changes we have seen at this scale in a very long time," said Sarah Austin, a policy analyst at the National Association of Student Financial Aid Administrators, a nonprofit membership organization.Borrowers enrolled in the Biden-era Saving on a Valuable Education, or SAVE, plan are also facing major changes as the Trump administration moves to wind down the program and shift borrowers into new repayment options. Loan payments for the roughly 7.2 million people enrolled in SAVE have been on pause for two years as a legal battle over the program's fate played out.Borrowers should talk to their loan servicers, and students should look to their financial aid office for assistance as they navigate the transition, experts said. They can also consult online calculators such as this one, from the New York state-funded Education Debt Consumer Assistance Program, to help determine which repayment option makes the most sense.With so many changes ahead, borrowers need to...