If You Have Federal Student Loans: Take Action Now to Protect Your Income and Your Rights!
The Department of Education has made big changes to federal student loans. If you have federal student loans that you took out for yourself or for your child’s education, here are key updates you need to know.
Do you have any Parent PLUS loans that you consolidated into a Direct Consolidation Loan before July 1, 2026?
You have a right to income-driven repayment and public service loan forgiveness as long as you make at least one payment in income-contingent repayment before July 2028.
However, if you take out any new federal student loans for yourself or your child, you will lose your right to income-driven repayment and PSLF.
I do not know what kind of federal student loans I have—how do I find out?
You can find out what kind of federal student loans you have and their status by creating a studentaid.gov account.
Do you have any student loans from before July 1, 2026 AND are considering taking out new student loans or consolidating your existing loans?
You could lose your rights to certain kinds of income-driven repayment plans and payments as low as $0 if you take out any new loans. This is also true if you consolidate your existing loans into a direct consolidation loan. Existing student loan borrowers who take out any additional student loans or consolidate their loans will lose repayment options for all of their loans.
I have federal student loans that are all from before July 1, 2026—what are my repayment options?
If you only have loans from before July 1, 2026, you have the following repayment plan options:
- Standard Repayment Plan: Payments are a fixed amount that is calculated so that your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).
- Graduated Repayment Plan: Payments are lower at first and then increase, usually every two years. Payment amounts are calculated so that your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).
- Extended Repayment Plan: Available for borrowers with high balances to increase the number of years to complete payments.
- All income-driven repayment plans—different income-driven repayment plans have different methods of calculating your monthly payments, and some plans may have payments as low as $0 per month depending on your income.
Note: If you did not consolidate your Parent PLUS loans before July 1, 2026, then you will NOT be able to repay them in an Income Driven Repayment Plan.
Do you have any federal student loans from after July 1, 2026?
If you have even one single new loan from after July 1, 2026, you will only have the following repayment options:
- Tiered Standard Plan: Payments are a fixed amount that ensures your loans are paid off within 10-25 years (depending on the amount borrowed).
- Repayment Assistance Plan (RAP): Payments are calculated as a percentage of your annual income. There lowest payments are $10 per month.
How can I figure out what repayment option makes the most sense for me?
You can use the Repayment Calculator on studentaid.gov to explore different payment plans and compare your monthly cost on each plan.
I’m currently enrolled in the SAVE Plan—what do I need to know?
The SAVE plan is ending. As of July 1, 2026, student loan servicers are sending notices telling borrowers enrolled in SAVE to enroll in a different repayment plan within 90 days. If you receive a notice and do not switch repayment plans within 90 days, you may be automatically placed in standard repayment, which is often more expensive than other options.
How can I reduce my interest rate?
There is an opportunity to temporarily lower student loan interest rates. Borrowers who enroll in autopay prior to December 31, 2026 will have an interest rate reduction of 1% until June 30, 2028.
Community Legal Services may be able to help you take steps to preserve your rights as a student loan borrower. You should contact CLS for help if:
- You have existing federal student loans, including Parent PLUS loans, and you are considering taking out new loans or consolidating your loans.
- Your loans are in default, which could have serious consequences, including money getting taken out of your paycheck, social security, and tax refund.
- You are disabled and may qualify for loan cancellation because of a disability.
- You attended a predatory school that made promises to you that they did not keep about the cost of your education, the quality of the school, or what kinds of jobs you would be able to get upon graduation, which could be the basis for loan cancelation.
- You have been sued for unpaid student loans or tuition debt.
- You are low-income and having trouble making student loan payments and need help enrolling in income-based repayment.
Additional Resources for Student Loan Borrowers:
- Student Loan Borrower Assistance: This the National Consumer Law Center’s website for student loan borrowers.
- Education Debt Consumer Assistance Program (EDCAP): This is EDCAP’s website for information for student loan borrowers. EDCAP is a New York state program, but because federal student loans are the same across state lines, we recommend their website as a resource to borrowers in Philadelphia as well.
- Federal Student Aid: This is the U.S. Department of Education’s website for student loan borrowers. You can log into your account on this website to see the status of your federal student loans, as well as to see information about managing and repaying your federal student loans. You can also call the Federal Student Aid Information Center at 1-800-433-3243.
- Federal Student Aid Ombudsman: You can contact the Federal Student Aid Ombudsman, a neutral resource, if you disagree with the U.S. Department of Education’s management of your federal student loans. You can call the Office of the Ombudsman at 1-800-433-3243.
Updated 10/14/26
