The Republican-led policy bill cuts repayment plans to two options for future borrowers. Getty Images/Zooey Liao/CNET
The Republican-led "One Big Beautiful Bill" was signed into law by President Donald Trump last week, which will result in major changes to student loans, including fewer repayment options, caps on borrowing and new rules for Pell Grants.
The nearly 900-page bill means a lot of changes for taxes and Medicare, but its impact on higher education could alter how colleges operate and burden borrowers with education debt for much longer than expected, experts said.
"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 will be subject to the new rules. Millions of SAVE borrowers may be forced onto the new plans when the administrative forbearance period ends.
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 Republican-led bill consolidates student loan repayment options into a standard repayment plan and the Repayment Assistance Plan. Any student loans borrowed after July 1, 2026, will be restricted to these two repayment plan options.
1. Standard repayment plan
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