Overview

• Under the One Big Beautiful Bill, federal repayment plans will shrink to a standard 10–25-year plan and a new 30-year Repayment Assistance Plan by 2028.
• Interest accrual will restart August 1 for 7.7 million borrowers on the SAVE plan, who must switch repayment tracks or pay to earn credit toward forgiveness.
• From July 2026, new borrowers will choose between fixed payments over 10–25 years or income-based payments of 1–10% of income under the Repayment Assistance Plan.
• The Education Department has resumed processing and pledged to clear a backlog of nearly two million income-driven repayment applications in the coming months.
• Student advocates warn that rapidly changing rules and limited guidance could fuel borrower confusion, higher costs and a rise in defaults.