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.
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.
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:
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:
The following IDR plans will sunset over a two-year period:
Starting July 1, 2026, new student loan borrowers will be limited to just two repayment options:
Other Key Policy Changes
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
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:
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.
If you’d like to get involved in shaping policy, here is a concrete way to make a difference:
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.
Looking for more information about how to navigate the terrain of student loans? Check out more of our most recent blog posts.
January 12, 2026
Switching student loan repayment plans in 2026 can help when income or goals change, but it can backfire without a clear strategy. Thoughtful planning helps borrowers balance affordability, flexibility, and long-term costs.
December 31, 2025
Choosing the right student loan repayment plan in 2026 requires evaluating income, career path, and long-term goals instead of defaulting to the lowest payment. Regularly reviewing repayment options and prioritizing flexibility can help borrowers manage costs and avoid mistakes....
December 23, 2025
As college costs continue to rise, many families turn to parent student loans to help cover the gap, but recent federal student loan reforms make it more important than ever for parents to understand their options. This guide breaks down what every parent borrower needs to know about Parent PLUS loans, repayment and forgiveness programs, and the critical 2026 changes that could permanently impact eligibility for income-driven repayment and loan forgiveness.
