NASHVILLE, Tenn. (WTVF) — Whether you just got out of school or graduated a while ago, repaying your college loans is a bill that can take a lot of your money.
Several student loan changes are coming that could affect your payments.
I talked to Chip Lupo with the website WalletHub about these changes.
Some changes will go into effect in July and beyond, while others have already begun.
One big change that’s coming: all federal student loans will be streamlined to eventually be under one new repayment assistance program. The loans in that program will be income-based when borrowers pay them back.
"Your payments will be anywhere from 1 to 10 percent of your adjusted gross income, with a minimum of $10 a month," said Lupo.
Those loans can be forgiven after 30 years.
Another change involves income-based repayments.
Previously, many people had to prove partial financial hardship to get some income-based repayments, but that requirement is going away. This could mean more people can opt for that payment structure.
People looking to pay for a graduate or professional degree will see changes to borrowing limits.
According to Lupo, graduate degrees will be capped at $20,500 per year and a total of $100,000, and medical and law degrees will be capped at $50,000 a year and $200,000 total.
For all borrowers, Lupo recommends making sure your lender has your contact information to ensure they can notify you about any changes.
One significant change impacts anyone whose loan was put into forbearance, meaning they don’t have to make payments.
"Starting on July 1st, 2026, that's going to be considered taxable income," Lupo said.
According to Lupo, the goal of all these changes is to get more options from private lenders and fewer from the government.
"I think that's where all of this is ultimately leading, to kind of get the federally backed government part out of it, and open it up traditionally like it was maybe 15 or so years ago," Lupo said.
Click here for more information about the changes coming to student loans.
This story was reported on-air by Robb Coles and has been converted to this platform with the assistance of AI. Coles verifies all reporting on all platforms for fairness and accuracy.
Do you have more information about this story? You can email me at robb.coles@newschannel5.com.
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