Overview

• Senate Republicans cleared a 51-49 procedural vote to move the One Big Beautiful Bill onto the floor for extended debate under budget reconciliation.
• The current text postpones the repeal of ICR, PAYE and SAVE plans until July 2026–June 2028, during which existing borrowers must shift into a modified Income-Based Repayment plan.
• Parent PLUS borrowers now have until July 2026 to consolidate loans and until June 2028 to enroll in ICR before new borrowing caps and loss of income-driven options take effect.
• Senators removed language that would have stripped residency credit for medical and dental professionals, preserving their eligibility for Public Service Loan Forgiveness.
• Key relief and deferment changes include a 10-year delay on Borrower Defense and Closed School Discharge rules, elimination of hardship and unemployment deferments, and a nine-month cap on discretionary forbearance per 24-month period.