If you have a ton of questions about student loans right now, you’re not alone. The federal student loan system underwent a major overhaul in 2026, with new borrowing limits, changes to repayment plans, and the elimination of the Grad PLUS program for new borrowers. Whether you’re starting college, helping your child pay for school, or already paying back your student loans, you’re probably wondering what these changes mean for you. Here are answers to some of the top student loan questions borrowers are asking right now.
1. What’s going on with the SAVE plan?
Introduced by the Biden administration in 2023, the SAVE plan offered lower student loan payments and a faster path to forgiveness for millions of borrowers. However, it was blocked by legal challenges and ultimately eliminated in 2026.
If you were enrolled in SAVE, you’ll need to switch to a new repayment plan if you haven’t done so already. Loan servicers began notifying borrowers about switching plans on July 1, 2026, and you have 90 days after receiving your notice to enroll in a different plan.
If you don’t choose an alternative repayment plan, your loan servicer will pick one for you.
2. Which repayment plan should I choose now that SAVE is gone?
You have several other repayment plans to choose from now that SAVE is gone, though you may see an increase in your monthly payments. If you want to stay in income-driven repayment, you may be eligible for some or all of these plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Income-Contingent Repayment (ICR)
- Repayment Assistance Plan (RAP)
All these plans adjust your monthly payments based on your income and family size, but they use different formulas and eligibility criteria. Payments on these plans can also qualify for Public Service Loan Forgiveness, provided you meet the other requirements.
Note that PAYE and ICR will be eliminated by July 2028. If you don’t want to switch repayment plans again in a couple of years, you may prefer IBR or RAP.
If you don’t need income-driven repayment or aren’t pursuing PSLF, you can also explore alternative plans, such as:
- The old 10-year Standard Plan
- The new Tiered Standard Plan
- Extended Repayment
- Graduated Repayment
Some of these plans are only available as long as you don’t take out any new loans on or after July 1, 2026. If you do, you’ll be limited to the new Tiered Standard Plan or RAP.
The best way to compare plans is with Federal Student Aid’s Repayment Calculator. This tool can estimate your monthly payments and interest costs on each plan based on your information.
3. Which repayment plans qualify for Public Service Loan Forgiveness?
You must make 120 on-time payments on qualifying repayment plan to qualify for Public Service Loan Forgiveness, along with working for 10 years in public service and meeting other requirements. Repayment plans include:
- 10-year Standard Repayment Plan
- Income-Based Repayment
- Income-Contingent Repayment
- PAYE
- Repayment Assistance Plan
- SAVE (no longer available)
Many borrowers in SAVE were placed in mandatory forbearance while the legal challenges played out in the courts. This time in forbearance doesn’t count toward PSLF’s 120-payment requirement.
However, you may be able to buy back those months once you’ve completed your 10 years of public service via the PSLF Buyback program. With this program, you can make a lump-sum payment to cover those months you spent in forbearance.
4. What are the new Tiered Standard Plan and Repayment Assistance Plan?
The Tiered Standard Plan and Repayment Assistance Plan are two new repayment plans created by the One Big Beautiful Bill Act (OBBBA). Here’s how they work:
- Tiered Standard Plan: This plan sets your repayment term between 10 and 25 years, depending on your loan balance. You make fixed monthly payments based on that term.
- Repayment Assistance Plan: This income-driven repayment plan adjusts your payments to 1% to 10% of your adjusted gross income, minus $50 for each dependent. It also waives any unpaid interest from month to month. RAP has a term of 30 years.
If you borrowed all your loans prior to July 1, 2026, you may use these new plans or any of the older plans that you’re eligible for. If you take out a new federal loan after this date, you’ll be limited to the Tiered Standard Plan or RAP.
5. How much can undergraduate students borrow in federal student loans in 2026-27?
The federal borrowing limits for undergraduate students did not change in the 2026-27 year. Here’s how much you can borrow, depending on your year in school and dependency status.
| Year in School | Dependent Undergraduate | Independent Undergraduate |
|---|---|---|
| First year | $5,500 | $9,500 |
| Second year | $6,500 | $10,500 |
| Third year and beyond | $7,500 | $12,500 |
| Aggregate Undergraduate Limit | $31,000 | $57,500 |
The higher limits can also apply to dependent students whose parents are not able to get a Parent PLUS loan due to adverse credit.
6. How much can graduate students borrow in federal loans in 2026-27?
OBBBA changed the borrowing limits for new graduate students moving forward. They are:
- Up to $20,500 per year with a lifetime limit of $100,000 for graduate students
- Up to $50,000 per year with a lifetime limit of $200,000 for professional students, such as medical, law, and dental students
There’s also a total aggregate loan limit of $257,500.
If you’re already in graduate school, you can keep borrowing under the old rules for three more years or until your program ends, whichever comes first.
7. Can graduate students still get Grad PLUS loans?
The Grad PLUS loan program was eliminated as of July 1, 2026. If you’re a new borrower, you can no longer access Grad PLUS loans. If you already have Grad PLUS loans, you can keep borrowing for three more years or until the end of your program, whichever comes first.
The Grad PLUS loan program let qualifying students borrow up to their cost of attendance, minus other financial aid received. With its elimination, some graduate students may face a gap in funding, especially those who are attending high-cost programs.
8. How much can parents borrow in Parent PLUS loans in 2026-27?
Borrowing limits for Parent PLUS loans have also changed as of July 1, 2026. While parents could previously borrow up to their child’s full cost of attendance, minus other financial aid received, the new limits are:
- Up to $20,000 per child per year
- Up to $65,000 per child in total
Legacy borrowers, or those who already took out a Parent PLUS loan before July 1, 2026, can keep borrowing under the old rules for three more years or until their child leaves school, whichever is first.
9. Are Parent PLUS loans eligible for income-driven repayment?
Parent PLUS loans disbursed on or after July 1, 2026 are no longer eligible for income-driven repayment. That means those Parent PLUS loans also no longer have a pathway to Public Service Loan Forgiveness, as the program requires payments on an income-driven plan.
Older Parent PLUS loans are eligible for income-driven repayment if you consolidated them into a Direct Consolidation Loan before July 1, 2026. In this case, you can get on the Income-Contingent Repayment plan.
After you make at least one payment on ICR, you’ll be eligible to switch to IBR. You’ll have to switch to IBR before ICR is eliminated in a couple of years (and you may choose to sooner if IBR offers a lower monthly payment).
10. Should I take out a private student loan if federal loans don’t cover my costs?
If federal student loans don’t cover your cost of attendance, you might consider a private student loan to fill the gap. Before taking out more loans, though, make sure you’ve maximized other types of financial aid, like grants, scholarships, and work-study. You might also consider a part-time job while you work toward your degree.
If you still need to borrow, look for private student loans with a competitive interest rate and flexible repayment terms. Consider whether the lender offers any special benefits, like interest rate discounts, a longer grace period, or payment options if you experience financial hardship or go back to school.
Try to borrow only what you need to cover your remaining costs and no more. A larger loan balance means you’ll have more to pay back after you graduate.
11. Do I need a cosigner to qualify for a private student loan?
Most private student loans are credit-based, so it can be tough to qualify on your own as a student, if you don’t have a strong credit profile. Applying with a creditworthy cosigner, often a parent or sponser, helps many students get approved and access better interest rates. According to Enterval Analytics, 96% of undergraduate students and 73% of graduate students take out private student loans with a cosigner.
However, you may be able to qualify on your own if you can meet a lender’s requirements for credit and income. Some lenders also offer no-cosigner student loans, often to upperclassmen who are pursuing certain degrees or attending eligible schools. These no-cosigner loans may have higher interest rates, though.
Many lenders have cosigner release options after a certain period of time or number of payments.
12. How do I apply for a private student loan?
You can apply for a private student loan directly with a bank, credit union, or online lender. Before you apply, consider shopping around to find the best interest rate and repayment terms. You may have the option of prequalifying for loans online, which is a quick process that won’t impact your credit.
Once you’ve chosen a lender, you can usually fill out an online application with your personal and school information and requested loan amount. If you’re applying with a cosigner, you’ll also provide their details. The lender will likely run a hard pull of your credit after you submit your official loan application.
If you’re approved, the lender will contact your school to certify your enrollment and cost of attendance. Lenders generally send the funds to your financial aid office, which puts them toward tuition and fees before sending any remaining amount to you.
13. What happens if I can’t afford my student loan payments?
If you can’t afford your student loan payments, reach out to your loan servicer about your options. Federal student loans are eligible for deferment and forbearance, both of which let you postpone payments for a period of time.
Federal deferment and forbearance rules will be more limited soon, though. Due to OBBBA changes, borrowers with loans first disbursed on or after July 1, 2027 will no longer qualify for economic hardship or unemployment deferments. They’ll also be limited to nine months of discretionary forbearance within a 24-month period. Legacy borrowers can continue using deferment and forbearance under the old rules.
Some private lenders also let you pause or modify payments if you run into financial hardship, but policies vary by lender. Reach out to your loan servicer before you miss payments, incur late fees, or go into delinquency or default.
Stay informed about student loans
With so many student loan changes in 2026, it’s understandable to have questions about how much you can borrow, which repayment plan to choose, and more. When in doubt, contact your loan servicer, head to the Federal Student Aid website, or rely on other trustworthy sources for answers to your questions. Staying informed about student loan policy changes can help you sort through your options and make the best choices for your education and finances.
