Overview

• Income-driven repayment plans ICR, PAYE and SAVE are set to be phased out between July 2026 and July 2028 with borrowers limited to either a standard plan or a new 30-year Repayment Assistance Plan.
• Graduate PLUS loans will be eliminated and graduate Stafford borrowing will be capped at $20,500 per year with a $100,000 lifetime limit under the Senate bill.
• Parent PLUS borrowing faces a $65,000 cap and new loans will no longer qualify for income-driven repayment or most forgiveness programs after July 1, 2026.
• Economic hardship and unemployment deferments will be removed and discretionary forbearance restricted to nine months within any 24-month period, raising concerns about default risk.
• The bill preserves Public Service Loan Forgiveness eligibility for qualifying borrowers and sets a July 2026 implementation deadline pending final House approval.