Federal student loan changes taking effect July 1 will end the SAVE plan, tighten repayment rules, and impose new borrowing limits for some graduate students. Borrowers enrolled in SAVE should watch for notices from their loan servicer about next steps.
Changes Ahead
Janell Valdez, associate director of financial aid at UNM Health Sciences Center, said borrowers have been told about the July 1 change, but the U.S. Department of Education has not clearly said they must choose a new repayment plan by that date. Borrowers can reduce their interest rate by 1% by enrolling in autopay by Sept. 30.
The changes could be especially significant for graduate and professional students. New borrowers in many programs will no longer be eligible for Grad PLUS loans, a federal option often used to cover costs not met by other aid. Some students may need to turn to private loans instead.
New lifetime borrowing caps are also taking effect for some graduate borrowers. Valdez said incoming MD students, for example, will face a $200,000 aggregate federal loan limit.
Original reporting: KOAT Albuquerque — read the source article.
