Overview

• Starting August 1, interest will resume on loans for 7.7 million SAVE enrollees unless their payments cover the accruing interest.
• Moving to Income-Based Repayment raises the payment cap to 10% of discretionary income—up from 5% under SAVE—and climbs to 15% for older loans, potentially doubling monthly bills.
• A Repayment Assistance Plan mandated by Republican-controlled Congress will launch by July 1, 2026, though its payment formulas and savings compared with IBR remain uncertain.
• Economic hardship and unemployment deferments will stay in place through July 1, 2027, offering temporary relief to eligible borrowers.
• In July 2025, Congress repealed SAVE and other income-driven plans, ordering a new framework to take effect mid-2026.