Major federal student loan changes are set to take effect on July 1, shifting the landscape for virtually all federal borrowers.

To help Pitt employees understand exactly what these new rules mean for their financial future and how to handle them, Savi is hosting a live webinar at noon July 9. Register today.

What is potentially changing on July 1 and why it matters:

• The SAVE plan ends: With the SAVE plan being phased out, millions of borrowers will need to transition to a new plan.

• The new RAP plan launches: The Repayment Assistance Plan (RAP) will become the primary income-driven option. It structures monthly payments between 1% and 10% of your income, waives uncovered interest, and remains a qualifying plan for Public Service Loan Forgiveness.

• New caps on future borrowing: Graduate students and parents will face strict new annual and lifetime borrowing caps, and Grad PLUS loans will be eliminated for new borrowers. This is still being challenged in court. A federal court on June 24 temporarily blocked the U.S. Department of Education from applying new regulations significantly restricting which graduate degrees count as “professional.”

The changes became even more complex last week when a new legal filing asked a federal judge to pause the forced transfer of millions of student-loan borrowers off of SAVE, the income-driven repayment plan that the Trump administration eliminated in March, according to Business Insider.

The law firm Public Goods Practice filed a motion on June 23 seeking to block borrowers enrolled in SAVE from being automatically moved to a new, more expensive repayment plan while the firm’s broader lawsuit, which was filed in March, continues. The filing asked a federal judge for a preliminary injunction in Havens v. U.S. Department of Education, seeking to keep borrowers enrolled in REPAYE, halt the agency's planned transfers, and order immediate forgiveness for those who already reached their 20- or 25-year payment thresholds.

Even with the legal challenge, borrowers enrolled in SAVE will begin, receiving notices from their servicers on July 1 on the 90-day timeframe to transfer to a new plan. If borrowers do not voluntarily switch, they will automatically be placed in the standard repayment plan or the new tiered plan, both of which are the most expensive options.

In the live session for Pitt employees, Savi’s experts will help you:

• Confirm your best post-July 1 repayment strategy to prevent unexpected spikes in your monthly bills.

• Learn how to successfully navigate the new RAP framework to maximize your monthly savings.

• Get real-time, live answers to your specific student loan and PSLF questions.

To get a a head start on your strategy before the webinar, log into Savi’s personalized repayment calculator to view updated options and plan your next steps.

For questions specific to your student loan situation or account, please contact SAVI directly. You can chat with online support or call 833-945-0654.

— Susan Jones

Have a story idea or news to share? Share it with the University Times.

Follow the University Times on Facebook.