New Federal Student Loan Rules Take Effect on July 1, Limit Repayment Options for New Borrowers
Starting July 1, new federal student loan borrowers will face fewer repayment and debt forgiveness options due to the One Big Beautiful Bill Act passed under President Donald Trump. Existing borrowers retain access to favorable plans like Income-Based Repayment (IBR), but those taking out loans after this date are limited to two new repayment options: the Repayment Assistance Plan (RAP) and Tiered Standard Plan, affecting both old and new debt.
Topics: debt forgiveness federal student loans repayment plans