For millions of Texans carrying student loan debt, ignoring the problem may seem easier than trying to navigate a rapidly changing repayment system.

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.

More than 7 million student loan borrowers are now facing a major change, as a Biden-era repayment plan is set to be phased out.

U.S. household debt climbed to a record $18.59 trillion in the third quarter of 2025, according to the Federal Reserve Bank of New York, with higher balances across mortgages, credit cards, and student loans.

Starting August 1, interest will resume on federal student loans for millions of borrowers enrolled in the now-blocked SAVE repayment plan.

Millions of Americans are at risk of having their wages garnished as the federal government resumes collections on defaulted student loans.

Under the new plan, income and family size will determine the payments for current and future federal student loan borrowers with some payments dropping to zero dollars per month.

The action is a result of what the department calls a “fix” to income-driven repayment plans. It’s expected to provide $39 billion in federal student loan forgiveness.

The U.S. Department of Education launched the application process for those seeking student loan forgiveness in ‘beta mode’ as of Friday night, multiple reports say.