Student Loan Changes Are Coming: What Borrowers Need to Know Now

Last week, the H.R.1 Big Beautiful Bill Act passed a sweeping student loan reform and we now have a much clearer idea of how the landscape is shifting for federal student loan borrowers.

Here’s what’s important to know right now so you can stay ahead of the changes.
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Who Is Affected?

If you're currently enrolled in an income-driven repayment (IDR) plan, SAVE, IBR, PAYE, or ICR, you’ll still have access to a modified IBR option depending on when your loans were disbursed:

• Statutory version of IBR: Payments remain at 15% of discretionary income, calculated using 150% of the federal poverty level.

All borrowers enrolled in SAVE and PAYE will likely have to choose a new plan between July 1, 2026 and July 1, 2028 - since the Department of Education will have to sunset these plans and since the Bill takes away the authority of the Dept of Ed to manage plans that are written in as regulation per the bill.

If the Bill Passes as Written, Here’s What Will Happen:
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What Will Stay in Place

• 15% IBR plans will continue to be available to eligible borrowers.
  
  
• Public Service Loan Forgiveness (PSLF) will remain fully intact, including eligibility for medical and dental residents/interns.
  
  
• Borrowers currently in IBR can remain in that plan, even if they take out new loans after July 1, 2026 (with the exception of Parent PLUS borrowers, noted below).
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What Will Be Phased Out (2026–2028)

The following IDR plans will sunset over a two-year period:

• SAVE (Saving on a Valuable Education)
  
  
• PAYE (Pay As You Earn)
  
  
• ICR (Income-Contingent Repayment)
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Starting July 1, 2026, new student loan borrowers will be limited to just two repayment options:

1. A revised Standard Repayment Plan, or
   
   
2. The Repayment Assistance Plan (RAP)
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Other Key Policy Changes

• Married borrowers who enroll in RAP will be allowed to exclude their spouse’s income by filing taxes separately.
  
  
• Discretionary forbearances will be capped at 9 months over any 2-year period, down from the current 36-month maximum.
  
  
• Economic hardship and unemployment deferments will be eliminated under the new structure.
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Special Note for Parent PLUS Borrowers
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• If you're already in IBR/PAYE/SAVE through a Double consolidated Parent PLUS loan, you will still have the option for  IBR, as long as you do not take out any new federal loans after July 1, 2026.
  
  
• If you do borrow new federal loans after that date, all of your loans (including the older ones) will be required to enter the Standard Repayment Plan or RAP - except for:.
  
  
• Parent PLUS loans since they are considered "excepted" and are not eligible for the RAP plan - only option is Standard Repayment for all new and previous loans
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If any borrower takes out a new loan after July 1, 2026 - the only available option will be RAP or Standard Repayment on all previous loans

What Do You Need to Do Right Now?

These upcoming changes are complex and could drastically shift your repayment timeline, monthly payment amount, and even your path to forgiveness.

That’s why now more than ever is the time to work with a student loan expert.

The right guidance can help you:

• Lock in the lowest possible monthly payments
  
  
• Stay eligible for key forgiveness programs
  
  
• Avoid costly missteps during the transition
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Whether you’re a teacher, nurse, parent, or grad school borrower, the stakes are higher now and a smart plan can make all the difference.

If you're unsure where to start, don’t navigate this alone. Let a trusted advisor help you stay protected and positioned for long-term success.

I'll continue to share updates as more details unfold.
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Want to Help Influence These Decisions?

If you’d like to get involved in shaping policy, here is a concrete way to make a difference:
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Contact Your House Representative

Share your story with your elected official. Keep it concise and respectful, focus on how these changes will affect your life and financial future.
 

You can find your representative here:
https://www.house.gov/representatives/find-your-representative

If you're unsure where to start, don’t navigate this alone. Let a trusted advisor help you stay protected and positioned for long-term success.

I'll continue to share updates as more details unfold.

‍Don’t miss the opportunity. Schedule your free evaluation today.