Starting July 1, the federal student loan landscape will change significantly.

From tomorrow, borrowing for student loans will be more restricted, and repayment methods will become stricter.

The most noticeable change is the end of the SAVE plan.

Current SAVE participants will receive notifications from their loan servicers after July 1 and must switch to another repayment plan within the provided 90 days.

If they do not take action, they may be automatically moved to the standard repayment or the new Tiered Standard plan, which could likely increase their monthly payments.

New borrowers will have fewer options. The new income-driven plan, RAP, calculates monthly payments based on 1-10% of income, with a $50 deduction for each dependent.

However, the repayment period can be up to 30 years, and there is no cap on monthly payments, which is a concern.

Graduate loans will also change. This is a worrying aspect. If funds are limited, it will become difficult to attend graduate school.

Regular graduate students will be limited to $20,500 per year, with a total of $100,000, while professional schools like medical and law schools will be capped at $50,000 per year, totaling $200,000.

Parent PLUS loans will also be capped at $20,000 per child, with a total of $65,000.

The previous method of "if tuition is short, parents cover it with PLUS loans" will become more challenging.

These changes will likely have a significant impact on Korean families. Many Korean parents typically combine FAFSA, federal Direct Loans, and Parent PLUS to cover tuition costs.

While there aren't many national statistics that specifically track "Koreans," data shows that 26% of AAPI students and 25% of Asian American students receive federal student loans.

Additionally, analysis indicates that 31.8% of Asian students use student loans each year.

The issue arises for Korean families aiming for private universities, medical schools, dental schools, or law schools.

Families with incomes that appear just high enough to receive minimal aid but still struggle with living expenses may find themselves in the most difficult situation.

In the future, it will not be enough to think, "It's a good school, so let's send them and pay later"; families will need to calculate expected salaries after graduation, total loan amounts, and retirement funds for parents.

In conclusion, while this reform aims to reduce debt, it represents a reduction in options for middle-class immigrant families.

Especially for SAVE participants, prospective graduate students, and parents considering Parent PLUS, it will be essential to seek out information and prepare after July.