Student loan repayment programs overhauled, many plans eliminated
Enacted8/10
Federal · H.R.1, One Big Beautiful Bill Act, Pub. L. 119-21 · Signed Jul 4, 2025
Impact 8/10
For loans taken out from July 1, 2026, eliminates income-driven plans (SAVE, PAYE, ICR) in favor of two options: a tiered standard plan and the Repayment Assistance Plan (1-10% of income, 30-year forgiveness). Existing borrowers keep a modified IBR; PAYE and ICR sunset by July 2028. The Education Department began moving about 7 million SAVE borrowers to new plans in 2026. Payments are generally higher than under SAVE.
Safety net & benefitsEducationEnvironment & energyYoung adults (18-30)Low-incomeStudentsImmigrants
Sources
✓ Verified against primary sources 2026-08-15