Important Student Loan Changes Going Into Effect Immediately
On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was signed into law. Several provisions are already in effect that could directly impact your repayment strategy. Here’s a high-level breakdown for graduate and professional borrowers:
Easier Access to Income-Based Repayment (IBR)
You no longer need to demonstrate a “partial financial hardship” to enroll in IBR. If your federal loans were disbursed between July 1, 2014 and July 1, 2026, and you previously did not qualify, you do now. That means payments at 10% of discretionary income, with forgiveness after 20 years, are now on the table for many borrowers who were stuck with the less generous Income-Contingent Repayment (ICR) option (20% of income for 25 years).
Parent PLUS Consolidation Loans Now Eligible for IBR
Borrowers who consolidated Parent PLUS loans are now eligible to enroll in IBR. While this won’t affect your own school loans directly, it may help your parents or others who borrowed on your behalf.
Expanded PSLF Eligibility Through New Repayment Plan
The OBBB introduces a new Repayment Assistance Plan (RAP) launching no later than July 1, 2026. Even though RAP hasn’t launched yet, any payments made under it will count toward Public Service Loan Forgiveness (PSLF) immediately once it’s active.
Bottom Line
If you’re in or about to enter repayment, this law opens the door to more accessible income-based options and a more inclusive path to forgiveness. We’ll be watching closely for updates on RAP and system changes affecting enrollment in IBR.
Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.
