"Beginning in July, the Department of Education plans to begin its process of eliminating existing income-driven repayment plans and replacing them with two options: a standard repayment plan and a new Repayment Assistance Plan. The standard repayment plan would set fixed payments for borrowers over a 10 to 25-year period based on the borrower's original balance. The Repayment Assistance Plan would serve as the income-based option for borrowers;"
"The new year is bringing a host of new changes for millions of student-loan borrowers. Beginning in July 2026, the student-loan provisions signed into law in President Donald Trump's "big beautiful" spending legislation are set to begin taking effect. Those provisions include rolling out new student-loan repayment plans, new borrowing caps, and eliminating existing income-driven repayment plans, which could result in higher monthly payments for borrowers."
Beginning July 2026, provisions from the 2023 federal spending law will take effect, introducing new repayment structures, borrowing caps for advanced degrees, and elimination of several income-driven repayment options. The Department of Education will replace existing income-driven plans with a standard repayment plan and a Repayment Assistance Plan (RAP). The standard plan sets fixed payments over 10 to 25 years based on original balances. RAP would set payments at 1%–10% of income with a $10 minimum and forgiveness after 30 years, making it less generous than prior plans such as SAVE. Borrowers with loans before July 1, 2026, have until 2028 to enroll in RAP; later borrowers face new rules.
Read at Business Insider
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