DCWP Sounds the Alarm on Major Changes to Federal Student Loan Repayment

July 1, 2026

Commissioner Levine Promotes NYC’s Free Financial Empowerment Centers to Help Borrowers Navigate Debt Confusion and Higher Payments Under Trump Plan

NEW YORK, NY – Today, Commissioner Samuel A.A. Levine issued an advisory on sweeping changes to federal student loan repayment programs, releasing the following statement:

"Governing by caprice and chaos is no way to lead, especially when so many working people are struggling to make ends meet. While Washington sows economic confusion on everything from student loan repayments to tax filing and tariffs, New York City is providing clarity—and treating our affordability crisis with the seriousness it deserves," said DCWP Commissioner Samuel A.A. Levine. “NYC’s Financial Empowerment Centers offer free, personalized guidance from trusted professionals who can help borrowers understand their options and protect their financial future. The resources, services, and counseling they provide are now more important than ever. I cannot overstate how transformative these centers are, and I encourage all New Yorkers to make an appointment today.”

Major policy updates impacting federal student loan borrowers come into effect today, July 1, including the end of the Saving on a Valuable Education (SAVE) Plan and the rollout of a new income-driven repayment (IDR) plan called the Repayment Assistance Plan (RAP). As outlined in official agency guidance and a recent op-ed, DCWP reminds SAVE Plan borrowers to take heed of new deadlines.

Borrowers currently enrolled in the SAVE Plan will begin receiving notifications from their student loan servicer and will be given 90 days to switch to a different repayment plan. Borrowers who do not act within this time period will be automatically enrolled in the Standard Repayment Plan, which requires fixed monthly payments that may be unaffordable. Other IDR plans, that base monthly payments on a borrower’s income and family size, are available, including RAP. Current SAVE borrowers working toward Public Service Loan Forgiveness (PSLF) must switch to another IDR plan to remain eligible for forgiveness.

Affected borrowers and their families are encouraged to access free, one-on-one financial counseling at one of New York City’s Financial Empowerment Centers, which have helped reduce New Yorkers’ debt by more than $126 million and increase savings by more than $14 million. Financial Empowerment Centers serve all New Yorkers age 18 and up, regardless of income or immigration status. Services are free, confidential, and available in person, by phone, or virtually.

Counselors can help borrowers:

Understand how recent federal repayment changes affect them
Compare available repayment options
Enroll in forgiveness programs and stay on track for Public Service Loan Forgiveness, if eligible
Develop a plan to manage student debt alongside other financial obligations

Today's federal developments come as student loan delinquency rates surge and millions of Americans struggle to afford basic necessities. As the Trump Administration retreats from protecting consumers, DCWP is leveraging its full arsenal of resources and partnerships to ease the burden for New Yorkers, 25% of whom are experiencing strain from student loan debt. To learn more about recent federal student loan repayment changes or schedule a free appointment with an NYC Financial Empowerment Center, please visit nyc.gov/studentloans.

The NYC Department of Consumer and Worker Protection (DCWP) is the nation’s leading municipal enforcement agency charged with delivering economic justice. DCWP leverages its authority to bring New Yorkers real economic relief and protect them from predatory, deceptive, and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws, including the Minimum Pay Rate for delivery workers. Through licensing more than 45,000 businesses in over 45 industries, DCWP ensures fair competition and a level playing field for responsible small businesses that are integral to New York City’s vibrant communities. DCWP also provides essential services such as free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. DCWP is committed to making sure New York City is a fairer, more affordable place to live. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, YouTube, and TikTok.

Media Contact:
Milo Fink Gringlas
Department of Consumer and Worker Protection
(646) 772-0331
press@dcwp.nyc.gov