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Major Changes to Repayment Plans

For new loans disbursed after July 1, 2026, the bill eliminates current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP):

• Students who have borrowed loans prior to July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard plans. 
• The good news: RAP borrowers will not be locked into a 30-year plan. They can switch to a standard 10- or 25-year plan if they choose.
• Current borrowers who do not borrow a loan after July 1, 2026, and want to stay in an income-driven plan must enroll by June 30, 2028. Those who don’t will be automatically moved into RAP.