Overview

• The Senate approved the student loan provisions July 1 as part of the GOP’s reconciliation package, sending the legislation back to the House before it heads to President Trump.
• Income-driven plans ICR, PAYE and SAVE will be phased out between July 1, 2026 and July 1, 2028, requiring borrowers to choose between a modified IBR plan or a new Repayment Assistance Plan.
• New borrowers from July 1, 2026 onward will have only a Standard repayment plan of 10 to 25 years or the new Repayment Assistance Plan with forgiveness after 30 years.
• The Graduate PLUS program is eliminated, graduate-level Stafford loans are capped annually and over a lifetime, and Parent PLUS borrowing is limited to $65,000 with no access to income-driven repayment.
• The bill removes economic hardship and unemployment deferments, restricts discretionary forbearance to nine months per two years, delays school-based discharge expansions by 10 years and permits just two default rehabilitation attempts with higher minimum payments.