What Do the New Student Loan Repayment Rules Under the Big, Beautiful Bill Mean for You and your Student Loan Debt?
- Rebecca S. Wright
- Sep 4
- 3 min read
Updated: Sep 16
If you’ve been following the news about student loans, you know that big changes are coming. According to a recent Forbes article by Adam Minsky, the Department of Education’s new guidance under the Big, Beautiful Bill is changing how repayment plans work for millions of borrowers. As a bankruptcy attorney, I work with people every day who feel buried by student loan debt. The latest guidance from the Department of Education explains how the Big, Beautiful Bill will roll out—and it’s important to know what this means for your payments.
Let’s break it down simply.
Good News First: More People Can Now Get Help
In the past, you had to show a “partial financial hardship” to qualify for Income-Based Repayment (IBR). That rule has been dropped.
What this means for you:
If you borrowed federal loans between 2014 and 2026, you may now qualify for IBR, even if you didn’t before.
IBR keeps your payments tied to your income—usually 10% of what you earn after basic expenses.
After 20 years, whatever’s left gets forgiven.
For many families, this is a chance to lower payments immediately. And there’s more good news: if you have a Parent PLUS loan that you consolidated before the new law passed, you may also qualify for IBR now. That’s a relief option that wasn’t available before.
The Tough News: Popular Repayment Plans Are Going Away
Here’s where things get harder. The repayment plans you may know—like SAVE, PAYE, and ICR—are all being phased out.
Starting in July 2026, new borrowers will only have two choices:
Standard Plan – fixed monthly payments for 10–25 years.
Repayment Assistance Plan (RAP) – payments based on income, usually between 1%–10%.
RAP might sound flexible, but here’s the catch: you could be paying for 30 years before forgiveness. That’s a long road.
Special Features of the New RAP Plan
The new RAP has some built-in protections:
If your payment doesn’t cover the interest, the government cancels the extra.
If your payment doesn’t reduce your balance by at least $50 each month, the government chips in that $50.
This is meant to stop your loan balance from growing, but it also means you could be in repayment much longer.
Deadlines You Can’t Ignore
If you’re already in SAVE, PAYE, or ICR, you’ll need to make a decision soon. By July 2028, you’ll have to switch into IBR or RAP. If you don’t, you could lose access to affordable payments altogether.
What This Means If You’re Struggling with Student Loan Debt
Let’s be real: these changes are confusing, and they can be scary if you’re already behind on bills. Here’s the bottom line:
Some borrowers now have new ways to lower payments (like IBR access).
But many will see their choices shrink as older plans disappear.
The new RAP plan could help in the short term, but it also stretches repayment for decades.
What You Can Do Right Now
If your loans already feel overwhelming, don’t wait until the deadlines sneak up on you.
Check your repayment plan today. Log in to StudentAid.gov or call your servicer.
Consider switching to IBR. It may lower your payment now and give you forgiveness in 20 years.
Think long term. RAP might help keep payments small, but remember—it stretches repayment over 30 years.
Talk through your options. Sometimes bankruptcy can free up money to help you manage your student loan payments.
Final Thoughts
Student loan debt is already one of the biggest financial struggles my clients face. With these new changes, it’s going to get harder for many borrowers to manage payments and stay afloat.
The good news is you’re not alone—and you do have options. If your student loans are overwhelming you, I can help you understand what these changes mean for your future and guide you toward relief. Schedule a free consultation today to learn more about how you can eliminate your student loan debt through Bankruptcy.
Friendly Disclaimer Reminder
This article is provided as general information, not legal advice. Laws and outcomes vary. For guidance on your specific situation, please contact a Wyoming bankruptcy attorney. Federal law requires us to mention that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
