What borrowers need to consider before the July federal student loan changes

Article excerpt

Federal student loan borrowers face significant changes arriving in July 2026, and financial advisors warn that preparation time is running short. The shifts will affect repayment plans, interest calculations, and borrower eligibility across multiple loan programs. Borrowers should review their current loan status, explore available repayment options, and understand how the changes might alter their monthly payments and long-term debt trajectory. The window to prepare, roughly 18 months away, gives households time to adjust strategies, but only if they act soon. Key decisions include whether to consolidate loans, switch repayment plans, or take advantage of any remaining provisions before the new rules take effect.