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Major federal student loan changes take effect July 1. Here’s what Houston-area borrowers need to know
By Ninfa Saavedra, Brittany Jeffers at KPRC 2 Houston / Click2Houston (NBC)
· June 30, 2026
· 2 min read
Millions of current and future student loan borrowers will see major changes beginning July 1 as a sweeping overhaul of the federal student loan system takes effect.The changes, included in the One Big Beautiful Bill Act, impact repayment plans, borrowing limits and loan forgiveness programs. Whi...
Key takeaway Starting July 1, new Parent PLUS loans will be capped at $20,000 per dependent undergraduate student per year, with a lifetime borrowing limit of $65,000 per student.
Why this matters in Magnolia News
For families in Magnolia , the new $20,000 annual cap on Parent PLUS loans could significantly impact college planning, particularly for those with multiple children attending undergraduate programs. With the average Houston resident already carrying nearly $45,000 in debt, the potential shift towards private student loans is a concern, as these loans often lack the protections and flexibility of federal loans. As a result, some Magnolia families may need to reassess their college funding strategies, potentially exploring alternative options such as savings plans or scholarships. The changes to repayment plans, including the introduction of the Repayment Assistance Plan, will also require borrowers to carefully consider their options and seek guidance to ensure they are making informed decisions about their debt. Local families would be wise to take advantage of resources like StudentAid.gov to navigate these changes and make the most of the available repayment options.
About this story
Original reporting by KPRC 2 Houston / Click2Houston (NBC) . Magnolia News surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KPRC 2 Houston / Click2Houston (NBC) . Have a tip or correction? Contact our newsroom .
Category: schools ·
Published: June 30, 2026 ·
Source: KPRC 2 Houston / Click2Houston (NBC) ·
Reading time: 2 min
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Frequently asked about this story
What is this story about? Millions of current and future student loan borrowers will see major changes beginning July 1 as a sweeping overhaul of the federal student loan system takes effect.The changes, included in the One Big Beautiful Bill Act, impact repayment plans, borrowing limits and loan forgiveness programs. Whi...
When was this published? This article was first published on June 30, 2026 by KPRC 2 Houston / Click2Houston (NBC) and curated for Magnolia News readers.
Who reported this story? This story was reported by Ninfa Saavedra, Brittany Jeffers at KPRC 2 Houston / Click2Houston (NBC). To learn more about how Magnolia News selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more schools coverage from Magnolia News, or browse our daily briefing and topic hubs .
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