Big Student Loan Changes Are Coming in 2026 — What Borrowers Need to Know

Student loans are changing in a major way, and many borrowers may not realize how much their repayment options could shift. In this episode of The New Money Habits Podcast, Nino Villa is joined by student loan coach Renée Earwood to talk through the federal student loan changes scheduled for July 1, 2026. Renée explains why this date matters, how the current student loan system is being restructured, and why borrowers should not assume their repayment plan will simply stay the same with a few minor tweaks. They discuss the SAVE plan going away, changes to income-driven repayment options, the new Repayment Assistance Plan, forgiveness timelines, possible tax consequences, and why borrowers may see their monthly payments increase. Renée also explains why Parent PLUS borrowers may be especially affected and why it is important to understand your loan type, repayment plan, income, family size, tax filing status, and long-term financial goals before making decisions. If you have student loans, Parent PLUS loans, or someone in your household is preparing to borrow for college, this conversation is an important place to start. The rules are changing, and the more clearly you understand your options now, the better prepared you can be before those changes take effect. 00:00 – Welcome and introduction 00:19 – Why July 1, 2026 matters for student loans 00:58 – What is changing in the federal student loan system 01:35 – Different borrower situations and repayment questions 02:18 – The SAVE plan is going away 03:28 – Income-driven repayment and higher monthly payments 04:02 – PAYE, ICR, and IBR repayment options 05:16 – How borrowers can start preparing 07:34 – Public Service Loan Forgiveness and repayment plans 08:27 – Forgiveness timelines and the new RAP plan 09:42 – Why repayment terms are getting longer 10:42 – Why student loans do not work like other debt 11:30 – The tax bomb borrowers need to understand 12:25 – Why borrowers may not be grandfathered in 15:02 – What happens if borrowers are not prepared 16:26 – Forbearance, deferment, and decision timelines 18:10 – Parent PLUS loan changes 20:32 – Why Parent PLUS borrowers need to act early 23:00 – What parents with students in college should do 24:19 – Refinancing and private student loan considerations 28:42 – Hope and practical next steps 29:17 – How Renée helps borrowers understand their options 31:09 – New Money Habits Community resources for student loans 31:44 – Renée’s Quick Start Guide 32:20 – Final encouragement and next steps Learn more at New Money Habits: https://www.newmoneyhabits.com Join the New Money Habits Community: Start your 7-day free trial and connect with others building healthier money habits. Memberships start at $7/month.   / newmoneyhabits   Helpful Resources Mentioned in This Episode: Student Loan Coach: Schedule a discovery call with Renée and learn more about your student loan options. https://studentloancoach.com Payday Power Planner: A free tool to help you plan your money between paychecks and make clearer decisions before the next payday arrives. https://www.newmoneyhabits.com/freebu... Food Number Calculator: A free tool to help simplify food budgeting and planning. https://www.newmoneyhabits.com/budget... Submit Your Questions: Have a question for the show? Email us at [email protected] Join Our Free Facebook Group: Connect with others building healthier money habits.   / newmoneyhabits   Schedule a Free Call with Coach Nino: Talk through your financial goals and next steps. https://www.newmoneyhabits.com/freese... Online Course: How to Create a Better Budget Your Foundation to Financial Freedom https://www.newmoneyhabits.com/bootcamp Music Credits: This episode features music by Summer School. Connect With Us: Follow @newmoneyhabits on social media for more insights, tools, and updates. @newmoneyhabits #newmoneyhabits #studentloans #studentloandebt #studentloanrepayment #parentplusloans #financialclarity #personalfinance #moneymindset #budgeting #financialplanning