How Student Loans are Changing
Manage Your Money
Federal legislation in 2025 affects loan repayment plans and borrowing limits.
Whether you’re a current student, future student, or parent of one, it’s a good time to review changes to education loans. Repayment plans and future funding options have experienced shifts that may impact you. Read on to understand the changes and know your options.
Changes to loan repayment
Borrowers who opted into the SAVE (SAVING on a Valuable Education) program should be aware that recent court decisions impact their loans.
As of July 2024, loans enrolled in the SAVE repayment plan were placed in forbearance. As a result, interest was not accruing on loans, and monthly payments were not required.
Beginning August 1, 2025, interest accrual resumed on SAVE enrolled loans following another court decision in February.
Borrowers with loans in this plan can opt to remain in forbearance. This option means monthly payments will not be due. However, total loan balances will increase because interest on these loans is accumulating.
Future payments may be higher when payments are due because interest keeps accruing while the loan is in forbearance.
While the SAVE program is still currently available to those already enrolled, it’s due to end on July 1, 2028. Borrowers should explore options before then.
What can borrowers do?
Borrowers do have options:
- Explore other repayment plans
- Contact your loan service provider for payment instructions. If you don’t recall the name of your servicer, you can locate it here.
Guidance available
Learn more about College Bound services at Broadview, and talk with the team if you or your child plan to attend college soon.
A Certified College Funding Specialist can review your circumstances and collaborate with you on a funding plan. During the meeting, discuss how to reduce costs, optimize the application process, and explore how student loan changes are relevant to your situation.
You can schedule your appointment now.
FAQs
Below, see answers to frequently asked questions.
A. Options for repayment of parent PLUS loans are changing as a result of recent legislation.
Only PLUS loans consolidated by July 1, 2026 and enrolled in Income-Driven Repayment (IDR) plans between July 1, 2026 and July 1, 2028 will be eligible to use the existing SAVE, ICR, and PAYE plans.
Parents who obtain new PLUS loans or consolidate existing loans after July 1, 2026 will only be eligible for the new standard repayment plan.
PLUS loans that are new or consolidated after July 1, 2027 will not be eligible for economic hardship or unemployment deferments.
Parent PLUS borrowers should consider whether consolidation before July 1, 2026 makes sense for them and enroll in IDR plans now to ensure access to options if needed. Parents should also review their understanding of repayment options before taking on new loans.
A. No. Changes to the SAVE program are pertinent to federal loans. If you have concerns about paying your Broadview loans, please contact us directly.
A. Undergraduate student borrowers already experience federal lending limits. However, more limits to borrowing are coming for graduate and parent borrowers.
Graduate students who were able to borrow up to the cost of their graduate program are now limited to $20,500 per year with a lifetime limit of $138,500. Borrowers attending law school or medical school will experience caps of $50,000 per year and a $200,000 lifetime limit. These limits may impact the programs available to students.
Parents will also see changes to the amounts they can borrow. Their PLUS loans will be limited to $20,000 per year and $65,000 per child. This is in addition to changes to the parent PLUS repayment options described above.
Finally, there is also a new lifetime limit for the combined balance of undergraduate and graduate loans: $257,500 per person.
A. Yes. New borrowers will have different repayment options than before. New options include the Standard Plan and the Repayment Assistance Plan (RAP).
RAP will be the only income-driven repayment option for new borrowers starting July 1, 2026. Borrowers pursuing public service loan forgiveness (PSLF) will need to enroll in RAP to be eligible. Additionally, any balances forgiven under PSLF in the future will be treated as taxable income.
A. Any amount of savings will help reduce the need to borrow to pay for college costs. Save early if you’re able. Consider exploring New York’s 529 saving program or consult with your financial advisor about the best options for planning ahead.
