finance
Federal student loan changes take effect July 1 after staff cuts at managing office
New lifetime caps and repayment limits begin next week. The office overseeing the $1.7 trillion portfolio lost 40 percent of its staff earlier this year.
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Sweeping changes to federal student loan rules take effect July 1, introducing lifetime borrowing caps and restricting repayment plan options for new borrowers. The office that administers the loans, Federal Student Aid, lost 40 percent of its workforce after reductions that began in March 2025.
Borrowers have reported receiving monthly bills as low as $50 when actual payments should be thousands of dollars.
Others have been unable to access the Pay As You Earn plan, which bases payments on 10 percent of discretionary income.
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