Student Loan Changes Are Rolling Out: Here's What Borrowers Should Expect

As of July 1, 2026, federal student loan repayment has entered a significant transition. With the end of the SAVE repayment plan, more than 7 million borrowers need to choose a new repayment option, while the U.S. Department of Education is simultaneously implementing two new plans: the Repayment Assistance Plan (RAP) and the New Standard plan, among other changes. As these changes roll out, some borrowers are experiencing issues such as incorrect payment calculations, application processing delays, and hours-long wait times for servicer support. If you've recently tried to make changes to your repayment plan or apply for loan forgiveness and found the process more complicated than expected, you're not alone. Many of the challenges borrowers are encountering stem from the ongoing implementation of these changes. Here's what's happening, what it could mean for you, and the steps you can take to stay on track.

What to do if you encounter a problem

While many borrowers won’t experience any major issues, it's worth reviewing any actions you take carefully over the coming weeks and months. Check that your repayment plan, monthly payment amount, loan balance, payment history, and (if applicable) your Public Service Loan Forgiveness (PSLF) qualifying payment count are all accurate. If something doesn't look right, don't assume it will automatically correct itself.

If you identify a problem, your student loan servicer is often a good place to start. Keep in mind hold times can be very long so before you call, gather any documentation that supports your case, such as recent billing statements, tax returns used for your IDR application, payment confirmations, or screenshots from your account. Be prepared to explain the issue clearly, and if the first representative can't resolve it, politely ask to speak with a supervisor. Keep detailed notes, including the date and time of the call, the representative's name, and any confirmation numbers you receive.

If the issue can't be resolved over the phone, submit a written dispute to your servicer describing the error, the correction you're requesting, and any supporting documentation. Save copies of everything you send and keep records of all communications. If your servicer ultimately denies the dispute or doesn't resolve the issue, you can escalate your complaint to the Federal Student Aid Ombudsman or the Consumer Financial Protection Bureau. These organizations can help review disputes and work with servicers to address unresolved issues.

For borrowers who have benefits like Tuition.io, we have a team of expert student loan coaches to help you understand your options. We can help you understand the next steps and find the most efficient options for resolving issues. Persistence is important, almost every issue can be resolved with the right documentation and enough follow-up.

Issues you should watch for

Some borrowers are encountering application based, calculation-based, and processing errors. While these issues don’t affect everyone, if you’re switching to a new income-driven repayment (IDR) plan, using a Dept of Ed calculator, or updating your PSLF qualifying payment count right now it’s worth additional attention to make sure everything is correct.

• Verify your IDR payment amount. Some IDR applications were showing a flat $50/month regardless of actual income or balance. That bug is reportedly fixed — but if you saw that number, don't assume it's accurate. Log in and look for documentation from your loan servicer to verify your real calculated payment before you budget around it.
• Double check that you’re seeing all your options. Certain IDR plans — including PAYE — aren't appearing on the online application for some borrowers who actually qualify for them. If you borrowed your first student loan after Oct 1, 2007 and before July 1, 2014 you could be paying more than you have to if you’re not seeing PAYE as an option.
• Review any IDR denials. A broken connection between the Dept of Ed and the IRS caused some IBR applications to get denied. If you haven't taken out new loans after 7/1/2026, you should qualify —if you get denied, give your servicer a call. You may need to submit a paper application to resolve the issue.
• Check to make sure you have all the PSLF credit you’ve earned. If you're working toward the 120 qualifying payments for forgiveness, check your tracker. Some borrowers find they’re missing months in their official count. Even one miscounted month can push back your forgiveness timeline, so this one is worth catching early. You can complete another PSLF application if you’re missing time with a specific employer, or if you’ve gotten your PSLF forms approved but the count didn’t correctly update, contact federal student aid.

Why this is harder than it should be

This transition period at the Dept of Ed means more borrowers are experiencing issues. Some borrowers may experience longer wait times, need to provide additional documentation, or submit a formal dispute or reconsideration request before an error is corrected. While that can be frustrating, there are established processes for addressing these issues.

The best thing you can do is stay engaged rather than avoiding your loans. Review your account, save copies of important documents, and keep records of your conversations with your servicer. If something doesn't look right, ask questions and follow up until you have a clear answer. Most importantly, don't assume an incorrect payment amount, application denial, or PSLF payment count is final without first verifying the details.

with challenges, you can use this opportunity to make sure you’re on the best repayment plan for your goals. Taking a few minutes now to review your account or ask for help from a Tuition.io student loan coach can help you prevent issues and ensure successful repayment or loan forgiveness.

If you have Tuition.io: our student loan coaches are available to help you navigate the process. Log in to Tuition.io to schedule a 1:1 with a coach.

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