July 1 brings sweeping changes to federal student loans and California law, affecting millions of Americans across education, employment, housing, and consumer protection. More than 43 million federal student loan borrowers face a major overhaul, while California residents navigate over 900 new laws covering everything from autonomous vehicles to school cell phone restrictions.
Federal Student Loan Overhaul
The most immediate change for borrowers is the end of the SAVE (Saving on a Valuable Education) plan. More than 7 million people enrolled in SAVE must choose a new repayment plan within 90 days of receiving notice from their loan servicer, or they will be automatically enrolled in a plan without having selected one.
Starting July 1, borrowers have two primary repayment options under the One Big Beautiful Bill Act, signed into law in July 2025. The Repayment Assistance Plan (RAP) is income-based, charging 1% to 10% of adjusted gross income with a $10 monthly minimum and forgiveness after 30 years. The Standard Repayment Plan allows repayment over 10 to 25 years depending on loan amount. Borrowers with older loans can continue using the Income-Based Repayment plan.
New borrowing limits take effect for loans disbursed on or after July 1. Parent PLUS loans are now capped at $20,000 per year per student, or $65,000 total per student in a parent’s lifetime. Graduate student loans are limited to $20,500 annually, with a lifetime total of $100,000. Professional student loans face a $50,000 limit with a $200,000 lifetime maximum. Existing Parent PLUS loans issued before July 1 can continue without these new limits for up to three more years.
Parent PLUS borrowers seeking Public Service Loan Forgiveness must consolidate their loans into a Direct Consolidation Loan and enroll in an income-driven repayment plan before July 1 to retain eligibility for forgiveness programs. After that date, only standard repayment will be available for unconsolidated Parent PLUS loans.
California’s Broad Legislative Wave
California is rolling out a comprehensive set of new laws affecting schools, transportation, consumer rights, and the workplace. All public school districts, charter schools, and county offices of education must adopt policies limiting or prohibiting student smartphone use during the school day under the Phone-Free Schools Act. School districts retain flexibility to design their own rules with community input, though the law mandates exemptions for emergencies, medical necessity, and specialized education plans.
Autonomous vehicles face new accountability measures. Assembly Bill 1777 allows police to officially cite self-driving robotaxi companies for traffic violations and requires them to provide a 24/7 emergency phone line to first responders. If a robotaxi blocks an emergency scene, authorities can set a digital boundary requiring the vehicle to leave or detour within two minutes.
Consumer protections expand significantly. Assembly Bill 660 standardizes food date labeling, banning confusing “sell-by” dates in favor of clear “BEST if Used by” and “USE by” labels to reduce food waste. Senate Bill 68 requires chain restaurants with 20 or more locations nationwide to disclose nine major food allergens—including milk, peanuts, and sesame—on physical menus or via QR codes.
Minimum wage increases take effect across California. Local city and county rates rise in places like Los Angeles ($18.42), Pasadena ($18.57), and Santa Monica ($18.47). Healthcare workers at large hospital systems (10,000 or more full-time equivalents) see their minimum wage jump to $25 per hour, while hospitality and hotel workers in cities like Los Angeles and Long Beach reach $25 to $26.50 per hour.
Additional California laws address housing, safety, and LGBTQ+ protections. Senate Bill 79 overrides local zoning restrictions to allow high-density housing within half a mile of major transit stops. Senate Bill 760 requires all K-12 schools to provide at least one accessible all-gender restroom. Assembly Bill 727 mandates that student ID cards in middle and high schools include The Trevor Project’s crisis hotline number for LGBTQ+ youth. The state’s gas tax increases to 63.4 cents per gallon, the nation’s highest, with diesel rising to 48.2 cents per gallon.
Sources
- Yahoo Finance — student loan overhaul details, SAVE plan ending, repayment plan options, Parent PLUS loan limits and consolidation deadlines
- FOX 11 Los Angeles — California laws effective July 1, autonomous vehicle regulations, school cell phone policies, food labeling and allergen disclosure, minimum wage increases, housing and LGBTQ+ protections
- U.S. Department of Education — two new repayment plans available July 1 under the Working Families Tax Cuts Act
- Harvard University Financial Aid Office — elimination of income-driven repayment plans (IBR, PAYE, SAVE) and replacement with RAP for new loans
- PHEAA — Standard Plan and Repayment Assistance Plan details, loan repayment options
- NPR — Parent PLUS loan caps at $20,000 per year with $65,000 aggregate limit
- ABC10 — California school smartphone restrictions and multiple new state laws taking effect
- KTVU — autonomous vehicle regulations and California laws effective July 1
