By Kaylie Wise
The federal student loan program is going through a major overhaul, with many changes having taken effect on July 1, 2026. You can find the details of the new loan limits and repayment options at Major Student Loan Updates.
For families, this may affect more than just a monthly payment. Some borrowers may need to choose a new repayment plan, which could change their payment amount or forgiveness timeline. New borrowers may also face borrowing limits that did not exist before, making it more important to plan ahead for potential funding gaps.
What’s changed at a high level:
• Some existing repayment plans are being phased out or replaced
• Borrowers may need to actively select a new repayment plan
• New limits may apply to how much can be borrowed, especially for graduate programs
We are sharing this now so that families are aware of these changes.
Start with a quick check-in
If you have federal student loans, a good first step is to log in to your Federal Student Aid account:
What to check:
• Your current repayment plan
• Your loan servicer’s contact information
• Your mailing address and email
• Any notices or required next steps
If you have older loans on grandfathered repayment plans, it is important to think carefully before taking out a new loan. Taking out a new loan could move older loans onto a different repayment plan.
Planning for graduate school
Changes for new graduate borrowers are significant. In the past, students and parents could borrow up to the full cost of attendance. Going forward, there are annual and lifetime limits on how much can be borrowed.
If graduate school is part of your plan, it may be helpful to think through how undergraduate borrowing, savings, and future needs all fit together. In some cases, this means weighing tradeoffs across multiple years rather than making decisions one year at a time.
Why multi-year planning matters
After working with college students and families, one of the most helpful steps is mapping out the full cost of college and graduate school—not just the next year.
Planning ahead helps families decide when to use savings, 529 plan funds, and federal loans. Spreading these resources across multiple years can reduce the need for private loans and create more flexibility.
This is especially important with new loan limits. Once a school year has passed, that year’s federal loan eligibility cannot be used later.
The bigger picture
Education planning is emotional because it is tied to opportunity, family, and the future. Parents want to help, students want options, and everyone wants to make a thoughtful decision.
At the same time, borrowing is a long-term commitment. The goal is not just to make college work today, but to make sure the decision still feels manageable years from now.
A simple next step
If student loans are part of your family’s plan, now is a good time to review where things stand.
If you would like help thinking through how these changes fit into your broader financial plan, we are happy to walk through the options with you and help you plan with clarity and confidence.
Kaylie Wise is a Financial Advisor at Bluespring Wealth’s Cincinnati office, where she helps keep the financial planning process organized and moving forward while making clients feel welcomed and supported. She earned a degree in finance and a CFP Board Registered Certificate in Personal Financial Planning from Western Kentucky University and is currently working toward her CFP® certification. Outside the office, Kaylie enjoys hosting dinner parties, traveling, practicing yoga and Pilates, and spending time with her cat, Finnick.
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