Do you have student loans? There are changes Philly borrowers need to know

More than 231,000 Philadelphians have student loan debt, and thousands are currently behind on payments. This debt is from loans that people take out to go to college or vocational school and often to send their children or other family members to these postsecondary schools.

Recent changes to the Federal Student loan program happened in 2025 and could impact how much you pay, whether you can remain in an income-based repayment program and which payments count toward Public Service Loan Forgiveness and other types of loan forgiveness.

Also, starting in 2026, borrowers who are in default could have their federal tax refund or social security or disability benefits diverted to pay outstanding balances.

However, there are actions you can take now to protect yourself and your financial health, but you need to act soon. Read on for more information about the changes and things you can do.

Weren't student loan repayments on hold due to COVID?

Repayment on all students loans has officially resumed. Any pauses that existed before due to COVID-19 have stopped. It is important that you know your servicer, your balance, repayment status and options.

• Log into studentaid.gov to check your current loan balance, your servicer, and see if your loans are delinquent or in default.
• You may qualify for a plan based on your income which can lower monthly repayment and keep your loans in good standing.
• To explore repayment options, visit the federal student aid website. Loan Simulator | Federal Student Aid

What do I do if I have a past due balance?

Call your loan servicer now. Ask about retroactive administrative forbearance or other options to stop collections before they start.

How to know if I am at risk of having my tax refund held?

Tax season is coming and if you are in default (you have missed more than 9 consecutive payments) you tax refund could be held. Action should be taken before filing for taxes.

• You can check to see if you are on the Treasury Offset Program List by calling the hotline at 800-304-3107
• For additional information and instruction please see National Consumer Law Center's Dial Before You File: Protect Your Tax Refund If You Have Student Loans - Student Loan Borrowers Assistance

What are some of the biggest changes that I need to pay attention to now?

SAVE Plan Borrowers: The SAVE plan is ending. Borrowers in this plan will eventually need to move to a different plan. Borrowers should explore options through the Loan Simulator and can learn more options here.

Parent PLUS Loans are changing. Starting July 1, 2026, student loan borrowers who have Parent PLUS loans that have not been consolidated into Direct Consolidation Loans will lose their access to all income-driven repayment plans, including those with payments as low as $0 per month.

• Parent PLUS borrowers should take immediate action to avoid losing access to affordable repayment plans. To learn about Direct Consolidation loans visit: Student Loan Consolidation | Federal Student Aid
• NOTE: Loan consolidation can take multiple months. After consolidating, borrowers will then need to enroll in the income-driven repayment plan. Borrowers should start as soon as possible to meet the July 1, 2026 deadline. More information can be found here: Do you have Parent PLUS loans? Act now to lower your payments before options disappear. - Student Loan Borrowers Assistance

What loan options will I have after July 1, 2026?

If you are a new borrower on or after July 1, 2026 the only repayment plan options available to you will be or the Repayment Assistance Plan. More information about these new plans can be found

If you are an existing student loan borrower who is planning to take on any new loans after July 1, 2026 (including consolidating existing loans) this will change the repayment options on ALL of your loans, regardless of when they were taken out. You should seek legal assistance or financial counseling to evaluate options before doing so.

Where can I learn more and get support?

There are a lot of places to get additional information! We encourage you to learn more and seek support if you need it.

• Community Legal Services (CLS) offers help to student loan More information can be found on their webpage: Student Loans - Community Legal Services
• Clarifi offers free financial counseling. Financial Counseling - Clarifi
• Institute for College Access and Success has a Borrower Center with resources and updates on federal loan changes
• Ed Cap based in New York offers information for student loan borrowers from all states: https://www.edcapny.org/
• National Consumer Law Center's Student Loan Borrowers Assistance webpage provides comprehensive information for Student Borrowers.