Student loan shake-up hits July 1: Here’s what to know

Axios

One group hit hardest is parent PLUS borrowers, says Betsy Mayotte, the president and founder of The Institute of Student Loan Advisors.

New Parent PLUS loans for parents of dependent students from July 1 must be repaid under the new tiered standard plan, without options for an income-driven plan.
If existing borrowers didn’t consolidate in time, they’re left with far fewer options.
“It’s heartbreaking … we’re getting emails from Parent Plus borrowers almost every day, saying, ‘I borrowed this much, my income is this much, I was anticipating being able to use an income-driven plan,'” she says. “And now, it’s too late.”
The OBBBA also put new caps on parent PLUS loans: $20,000 per year and a $65,000 total cap per dependent.