Starting July 1, 2026, the federal student loan system will enter a new era.

A sweeping set of federal policy changes will reshape how families and graduate students borrow for college starting in 2026. The legislation, passed this summer, eliminates some long-standing loan programs and replaces them with new caps and repayment plans.

While the reforms aim to contain debt growth and improve accountability for colleges, they also mark a clear shift away from the flexible borrowing model that has defined federal student aid for years. 

The Result: fewer borrowing options, stricter limits, and new tradeoffs for both students and parents.