Student Loan Planner Existing Borrowers are Okay. Future Ones I’m Worried About
Aug 5, 2025
Current student loan borrowers can relax, as they’re likely to be okay for now. But future borrowers may face tougher conditions, including higher payments and longer repayment terms starting in 2026. There are concerns that changes will impact graduate programs, especially in high-cost fields like medicine and law. Enrollment might drop and universities could adjust faculty sizes. Additionally, strategic financial planning will be crucial as new repayment plans come into play after the interest pause ends.
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Existing Borrowers Mostly Protected
- Existing borrowers maintain access to affordable repayment plans like new and old IBR and RAP options.
- Borrowers between October 2007 and July 2014 face tougher conditions losing PAYE eligibility.
Active Students' Borrowing Grace
- Active students as of July 2026 can borrow for three more years beyond that.
- This grace period is critical for expensive professional programs to avoid financial disruption.
Future Borrowers Face Harsh Terms
- Borrowing after July 2026 cuts off access to affordable IDR plans except the RAP plan.
- This leads to longer repayment periods and higher payment burdens for late borrowers.
