Busting Myths Before the July 1 Deadline

EPISODE RESOURCES New Money New Problems Podcast (https://podcasts.apple.com/us/podcast...) July 1 Deadline Changes, SAVE Ending, New Borrowing Caps, and Myth-Busting In this episode we explore major federal student loan changes tied to the key July 1 deadline and dispels common myths about what's to come. Key updates include new borrowing caps for Parent PLUS loans and the important distinction between a "standard" graduate student and a "professional" student. A new income-driven option, the Repayment Assistance Plan, arrives July 1, while PAYE and ICR will be phased out by July 1, 2028. Parent PLUS borrowers can lose access to IDR and PSLF after July 1 without required steps, and any new Parent PLUS borrowing after July 1 removes IDR/PSLF eligibility. SAVE is ending, with a 90-day window starting July 1 to choose a new plan. Consolidation must be completed and disbursed before July 1, and unnecessary consolidation can erase forgiveness credit. The episode also covers plan-switching credit rules, exemptions for already-enrolled students from new caps, and pending lawsuits challenging PSLF employer restrictions and graduate borrowing limits. 00:00 July 1st Changes Overview 01:45 New Borrowing Limits 04:01 New Repayment Plans 05:15 Parent PLUS PSLF Cutoff 06:20 SAVE Plan Ending 07:05 Consolidation Deadline 07:30 PSLF Employer Rule 08:48 Myths After Break 10:11 Parent PLUS Consolidation 11:16 Avoid Unneeded Consolidation 13:16 SAVE Letters Explained 14:54 PAYE Eligibility Update 17:05 IBR Hardship Removed 18:05 Switching Plan Credits 20:03 New Loans Change Options 21:08 Borrowing Limits Exemptions 21:39 Lawsuits And Hope 23:45 Wrap Up And Next Steps