Student Loans and Education Costs

Federal student loans help millions pay for college, but recent reconciliation legislation in July 2025 reshapes borrowing and repayment—so now is a good time to review how loans work and what to expect (see Federal student loan borrowing limits and rules).

Understanding loans

Before borrowing, complete the Free Application for Federal Student Aid and explore federal options and alternatives, including grants and military or veteran benefits (applying for federal student aid; DoD tuition assistance; veteran education benefits).

Repayment options and the 2025 changes

Under the reconciliation law, most existing income-driven plans are being replaced for new loans by a streamlined Repayment Assistance Plan (RAP) and a new standard repayment structure, with changes taking effect July 1, 2026; borrowers should review how income-based payments and the revised standard plan may affect monthly amounts and forgiveness timelines (see how to change your student loan repayment plan and student loan consolidation).

Manage risk and seek relief

If you struggle with payments, act early: explore repayment plan changes, consolidation, and options to avoid default or pursue forgiveness (options for getting out of student loan default; student loan cancellation). For planning, consider tax-advantaged savings like 529 plans to reduce future borrowing needs.