OBBBA rollout begins July 1 2026 with 2 repayment plans
Heads up, student borrowers: starting July 1, 2026, the One Big Beautiful Bill Act (OBBBA) is rolling out two new repayment plans:
Repayment Assistance Plan (RAP), which adjusts payments based on your income, and Tiered Standard Repayment Plan (TSRP), with fixed payments tied to your loan balance.
Existing plans like SAVE are going away, and borrowers currently enrolled in the SAVE plan will have 90 days to pick a new plan or get assigned one automatically.
PAYE and ICR repayment phaseout 2028
Older repayment options like Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) will be phased out by June 30, 2028.
If you're using these plans now, you'll need to switch to another eligible plan, such as RAP or TSRP or IBR, soon.
Plus, borrowing limits are changing: Parent PLUS loans will cap at $20,000 per year ($65,000 total), graduate students at $20,500 per year ($100,000 total), and Grad PLUS loans will not be available for new borrowers anymore.
Stay tuned for updates from your loan servicer and check StudentAid.gov so you're ready for the transition.