The One Big Beautiful Bill Act (H.R.1), signed into law on July 4, 2025, introduces significant changes to the federal Title IV student aid programs and repayment plans. If you are currently paying back federal student loans, it is highly recommended that you reach out to your loan servicer. They can help you navigate how these upcoming changes, triggered by the One Big Beautiful Bill, apply to your unique financial situation. While this page provides a general summary, individuals already in repayment need to speak with their servicer before deciding on their next steps.
Notice of Regulatory Implementation: The Office of Student Financial Aid Services is actively monitoring the legislation and its implementation details. This page will be updated regularly as additional guidance becomes available from the U.S. Department of Education.
Current Repayment Plans (Before July 1, 2026)
Fixed-Term Plans:
Standard Repayment
Graduated Repayment
Extended Repayment
Income Sensitive Repayment
Income-Driven Plans (IDR):
Income-Based Repayment (IBR)
Pay As You Earn (PAYE)
Saving on a Valuable Education (SAVE)
Replaced Revised Pay As You Earn (REPAYE)
Income-Contingent Repayment (ICR)
Changes Effective July 1, 2026
First Loan Borrowed on or after July 1st, 2026
New Standard Repayment Plan:
Four Fixed-Terms:
10 years: balances <$25,000
15 years: balances between $25,000-$49,999
20 years: balances between $50,000-$99,999
25 years: balances $100,000+
Only 10-year plans qualify for Public Service Loan Forgiveness (PSLF). Note: PSLF requires at least 10 years of repayment.
Student borrowers who do not select a plan will be placed into the Standard Plan.
New Income-Based Repayment Assistance Plan (RAP):
Monthly payment: 1%-10% of Adjusted Gross Income (AGI)
$10 minimum payment
$50 deduction per dependent
30-year repayment term; forgiveness after 30 years
No negative amortization (balances won't grow when payments don't cover interest)
Payments count toward PSLF
Borrowers' AGI
Monthly Payment
Less than $10,000
$10/month
$10,000 - $19,999
1% of monthly AGI
$20,000 - $29,999
2% of monthly AGI
$30,000 - $39,999
3% of monthly AGI
$40,000 - $49,999
4% of monthly AGI
$50,000 - $59,999
5% of monthly AGI
$100,000+
10% of monthly AGI
Current Borrowers
IBR borrowers may remain in their plan
All other non-Parent PLUS IDR borrowers must choose a new plan by July 1, 2028 or be moved to RAP
Parent PLUS loan borrowers will be moved to the new Standard Plan after July 1st, 2028 unless they consolidate and enroll in an IDR before July 1, 2026. Doing so means they can remain in IBR for the duration of the repayment period.