The "big, beautiful bill" that President Trump signed into law on July 4 overhauls the federal student loan system by reducing the number of repayment plan options down to two from seven and capping the amount individuals can borrow for higher education.

Understanding whether federal or private student loans make more sense can save you thousands in the long run.

It may make sense to switch to another income-driven repayment plan, but you do not have to make the move by Aug. 1. Here's what to know.