Champaign, IL (WAND) – Changes to federal student loan programs are creating new challenges for first-time borrowers, parents and those working to pay off existing student loan debt.

“This is challenging for many of our students and our families, and it’s not something that we often see,” said Michelle Trame, executive director of financial aid for the University of Illinois. “This is a very significant change to federal student aid.”

Trame says many students have contacted her office to figure out how they were impacted, and what they should do to ensure they can continue at the school.

One of the primary changes affects Parent PLUS loans. Previously, parents could borrow up to the full cost of attendance, minus any other financial aid received. That amount is now capped at $65,000 for the life of the student’s degree program. There’s an additional restriction of $20,000 in Parent PLUS loans per school year.

The SAVE plan, a Biden-era program that offered lower monthly student loan repayments, has also ended. Borrowers who were enrolled must choose a new repayment plan.

“Anybody who is still borrowing for their children needs to understand that the payment plans, they aren’t going to have any lower payment options at all,” said Betsy Mayotte, the president of the Institute of Student Loan Advisors. “Families need to be extra cognizant of how much they’re borrowing and what the monthly payment is going to be and for how long, and whether that’s something that’s going to be affordable.”

Students with questions about their aid status and the amount they need to borrow should connect with their school’s financial aid office. Graduates who still have student loans should check with their loan servicer or the federal student aid website.

“If they want to explore what payment options they are eligible for, studentaid.gov is the best resource,” Mayotte said. “There’s a calculator there, and if they’re applying for a lower payment option, that’s where most of them will apply for it.”