Student Loan Updates for June 2026

Greetings to all our clients and readers. The massive changes from the One Big Beautiful Bill (OB3) are kicking in July 1st, and even those living under the proverbial rock should know by now about all the loan limits and repayment plan changes.

We’re already seeing several system issues on the Federal Student Aid site, which we hope are simply due to them working on updates as they prepare for July 1st. But the OB3 is not the only important thing happening in the student loan world right now.

Here’s what we’ve got lined up for you in this month’s update:

• Conflicting info on who qualifies for PAYE
• Multiple issues with StudentAid.gov
• Latest processing stats on processing of PSLF Buyback applicants…or lack thereof
• Can advanced nurses overcome the new borrowing limits? They are certainly trying!
• Will the new PSLF restrictions from the Trump administration actually take effect on July 1st? Or will the courts intervene?
• Free webinar coming up to answer all your questions
• When is the best time to meet with an SLP advisor and what is our availability?

More PAYE Updates

The Department of Education finally updated their OB3 support page to reflect the final rules. The language (or rather, the absence of it) surrounding the PAYE plan really caught our attention. Last month, we detailed very specific rules for who would be allowed into the PAYE plan before it is terminated on 7/1/2028. Now, the language simply says that anyone who would normally qualify for PAYE is able to apply for it beginning on July 1st. That’s it!

While PAYE’s days are numbered, there is still a lot of value to be had for certain borrowers. For those who do not qualify for New IBR (and don’t want a big payment hike under old IBR or RAP), PAYE can be the go-to solution. It has a 10% payment calculation, a 10-year payment cap, and any payment made under PAYE will count towards PSLF and/or 25-yr IBR forgiveness.

Issues with StudentAid.gov

We’ve experienced a few frustrating issues with StudentAid.gov over the past week that I want to bring to your attention, along with a few solutions.

• Nearly everyone applying for IBR is showing a $50 payment calculation.
  • I wish this was the actual outcome! Alas, it is a false reading. Ignore the screen and proceed as planned. When you get your actual IBR letter a couple weeks later, it will show your proper payment. On behalf of the government, I apologize.
• The site does not send the verification code when trying to log in.
  • This has effectively shut down access for most borrowers. If you cannot verify your identity, then you can’t log in and apply for anything. This issue started occurring around June 11th. We sincerely hope it’s resolved by the time you read this, because there is no work around.
• When applying for PAYE/IBR, and payments are at or above the 10-yr cap, borrowers are not being allowed to select those plans.
  • This appears to be a system glitch. We’ve found that selecting the .pdf export option, finishing the remainder of the application, and then uploading it to the website seems to allow the application to be processed with the selected plan. We have a hunch this will no longer be necessary beginning July 1st.

Big News with PSLF Buyback Applications…We Hoped

Per a court settlement last year, the Department of Education is required to provide the court with PSLF processing stats no later than the 15th of each month. You’ll recall that the previous reporting period showed a massive uptick in processing volume. So, I was very anxious to see this month’s report, as it would tell us whether that was a fluke or whether the Department of Education had finally committed proper resources to this task.

As fate would have it, June 15th marked the first time they have ever been late filing the report. Therefore, we have no information to provide. I know many of you are waiting for forgiveness that feels like it will never come, which is insanely frustrating. So, again I apologize for the news that you’ll have to wait a little longer for some answers.

PSLF Lawsuit

Another frustrating information gap involves the Trump administration’s new restrictions on PSLF organizations, and the lawsuits trying to block them. A court hearing finally happened for the primary case back on June 6th. As of June 18th, however, there has been no action from the court…not even a preliminary injunction. If something doesn’t happen in the next 12 days, organizations will begin receiving PSLF ineligibility notifications on July 1st. Here is the link to our primary story covering all of this.

Nurses Pushing Back on The New “Professional” Designations and Loan Limits

These new loan limits affecting advanced nursing programs continue to be a hot-button issue. House Republicans advanced an amendment to their budget bill which would make these programs eligible for more money. But the budget process isn’t likely to conclude until fall, meaning the new loan limits would still take effect for fall programs beginning on or after July 1st.

Meanwhile, 25 Democratic-led states sued the Department of Education to raise the limits. They cited major concerns that these changes will make the shortage of healthcare providers even worse. Other interest groups have filed lawsuits as well. And the legal framework here is tricky. The OB3 rules gave some guidelines for what is considered “Professional” vs. “Graduate.” But it was ultimately up to the Department of Education to create the final list of programs which qualified as professional. This could go either way, depending on how the court interprets the OB3 rules.

Upcoming Webinar

We know that many of you have questions about PSLF Buyback, the SAVE transition, the OB3 impacts, recertifications, and much more. To get into more detail with all of these changes, we’re hosting a free webinar on June 25th at 8pm ET/5pm PT. Join us to get the latest updates, learn how to adjust your repayment strategy, and have your questions answered through our live Q&A session. Click here to register and join.

Our Consultation Calendar

As we wrap up, I want to take a moment to say thank you. We’ve seen a record response from this year’s graduating students, along with many other borrowers, who want to meet with us. We’ve also experienced tremendous demand from borrowers in the SAVE plan looking to understand their transition options and build a strategy for what comes next. We are incredibly grateful to everyone who sees value in what we do. Our team has spent countless hours dissecting all these new rules so that we can provide you with great advice. Thank you for trusting us to help you navigate this rapidly changing landscape.

At the same time, I want to apologize that our meeting calendar is so full right now. Everyone on our team is working overtime to meet this unprecedented demand. We’re truly all hands on deck right now; I’ve even brought back a former loan advisor to help us keep up!

Still, I know some of you have not been able to schedule a meeting within your preferred timeline. If you have time-sensitive questions, please contact us at Help@StudentLoanProfessor.com. I promise we won’t leave you hanging. Meanwhile, borrowers transitioning out of SAVE still have until the end of September to make that change. If that is your primary concern, an August meeting should provide plenty of time to evaluate your options and implement a strategy before the deadline.