Federal student loan changes took effect July 1, ending the Biden-era SAVE repayment plan and introducing new limits on graduate loans, according to coverage of the rollout. The changes are expected to raise monthly payments for millions of borrowers, especially those who previously relied on the most lenient terms. About 7.5 million Americans were reported in federal loan default as of June, with additional borrowers behind on payments and at risk of default. Officials also referenced an auto-pay interest-rate adjustment: borrowers using auto pay get a temporary 1% reduction beginning July 1, which reportedly results in an overall smaller additional benefit for those already receiving an existing discount. Borrowers previously enrolled in SAVE are expected to receive notices and have a 90-day window to switch to another income-driven repayment plan. If they miss the deadline, the Department may auto-enroll them in standard options, with processing delays expected. The immediate sector impact is operational: schools, advising offices, and student-support vendors will need to recalibrate counseling and outreach, particularly for graduate and returning borrowers navigating higher-cost repayment options.