Your Daily Personal Finance Briefing

Federal Student Loan Overhaul and Surging Inflation Impact July Finances

• New federal student loan rules, stemming from the One Big Beautiful Bill Act of 2025, took effect on July 1, 2026. These changes eliminate the grad PLUS loan program for new borrowers, introduce new annual and lifetime limits for graduate and parent PLUS loans, and replace several income-driven repayment plans with a new Repayment Assistance Plan. Federal loan borrowers enrolled in autopay will now receive a 1% interest rate reduction, a significant increase from the previous 0.25% discount, applicable to direct loans originated after July 1, 2012, if enrolled by September 30, 2026.

  Experian

• Inflation has climbed to a new three-year high, with the consumer price index rising 4.2% over the 12 months ending in May, according to the Bureau of Labor Statistics. This marks the fastest annual pace since April 2023 and is an increase from 3.8% in April, with energy prices, exacerbated by the conflict with Iran, accounting for over 60% of the monthly gain.

  ExperianForbes

• The IRS has announced an increase in standard mileage rates for the second half of 2026, impacting individuals who use their vehicles for business, medical, or moving purposes by allowing higher deductions per mile driven.

  Forbes

• U.S. credit card balances reached a record $1.14 trillion in the second quarter, accompanied by a rise in late payments. This growing high-interest-rate debt could influence consumer spending, potentially affecting retailers as shoppers face increased financial pressure.

  Inc