For Future Borrowers: Anyone Taking Loans After June 30, 2026

The New Standard Plan

Applies to any new loans or consolidations after July 1, 2026. Fixed monthly payments based on your total debt:

• Less than $25,000 - 10 years
• $25,000 to $49,999 - 15 years
• $50,000 to $99,999 - 20 years
• $100,000 or more - 25 years

Income Driven Repayment Plan (IDR)

RAP (Revised Affordable Payment) will be the only available Income Driven Repayment Plan; Parent PLUS borrowers cannot use RAP at all.

• New income-driven plan calculating payments based on percentage of total Adjusted Gross Income, not discretionary income.
• Forgiveness after 30 years (360 payments)
• Waives unpaid interest and matches principal payments up to $50/month
• Allows married borrowers to file separately to exclude spouse income

Limits on Deferments and Forbearance

• Economic Hardship and Unemployment Deferments end for new loans after July 1, 2027
• Forbearance limited to 9 months within any 24-month period for these new loans

Graduate PLUS Loans Going Away

Law eliminates the Graduate PLUS program, effective July 1, 2026, with legacy provisions for current borrowers to complete their program of study.

• If a borrower has a Graduate PLUS loan made before July 1,2026, while enrolled in a program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to completion, whichever is less

New Loan Limits

For more information review Popular Topics above

Loan Proration

The law requires institutions to prorate (reduce) annual loan amounts in direct proportion to the percent of full-time the student is enrolled