Republican lawmakers have proposed major changes to student loans, which would affect current and future borrowers. Liudmila Chernetska/Getty Images/CNET
Congress is one step closer to passing federal student loan changes in the Republican-led "One Big Beautiful Bill." The Senate narrowly passed its version of the budget bill earlier this week, and it is now back in the House.
If the House does decide to pass the bill as is -- and there could be more amendments, so nothing is final -- borrowers could see major changes to student loans, including a paring down of current repayment plans to just two options, both with longer repayment periods. Experts warn that the longer time frames for the new repayment plans could burden borrowers with education debt for much longer than expected.
"This could create a situation where borrowers are in repayment for a longer period, and overall costs could be higher [when] repaying under this plan," said Elaine Rubin, a student loan policy expert and director of corporate communications at Edvisors.
Existing borrowers may retain access to the Income-Based Repayment plan, but anyone who borrows after July 2026 would be subject to the new rules. Millions of SAVE borrowers could be forced onto the new plans when the administrative forbearance period ends.
Nothing has been finalized yet, but if the bill does pass, here's how it could affect your student loans and long-term finances.
Read more: If You're a Student Loan Borrower Enrolled in Save, Make This Move Now While Your Payments Remain Paused
What are the new student loan repayment plans in the budget bill?
The Senate's latest draft of the bill and the earlier draft from the House both outline two new repayment plans: a standard repayment plan and the Repayment Assistance Plan.
Any student loans borrowed after July 1, 2026, would be restricted to these two repayment plan options.
... continue reading