New student loan rules take effect July 1. Here's what to know.

Major changes to federal student loan rules take effect on Wednesday, July 1, that will limit how much Americans can borrow and their repayment options. The overhaul, made under the 2025 "One Big Beautiful Bill Act," will affect millions of people who take out loans to finance their education. "These are the most changes we have seen at this scale in a very long time," said Sarah Austin, a policy analyst at the National Association of Student Financial Aid Administrators, a nonprofit membership organization. The U.S. Department of Education described the overhaul as a way to streamline the student loan system, which currently consists of seven repayment plans, and rein in student loan debt, which stands at almost $1.9 trillion . Borrowers enrolled in the Biden-era Saving on a Valuable Education, or SAVE, plan are among those affected as the Trump administration moves to wind down the program and shift borrowers into new repayment options. Loan payments for the roughly 7.2 million people enrolled in SAVE have been on pause for two years as a legal battle over the program's fate played out. Borrowers should talk to their loan servicers, and students should look to their financial aid office for assistance as they navigate the transition, experts said. They can also consult online calculators such as this one , from the New York state-funded Education Debt Consumer Assistance Program, to help determine which repayment option makes the most sense. …