Starting July 1, 2026, significant changes to student loan repayment plans will be implemented under the One Big Beautiful Bill Act (OBBBA). The SAVE repayment plan has already been eliminated, and borrowers currently enrolled in this plan will receive notices to select new repayment options within 90 days. If they fail to choose a new plan, they will be automatically transitioned to another repayment option. The new repayment structure will primarily offer two plans for new borrowers: the Repayment Assistance Plan (RAP) and a Tiered Standard Plan. The RAP will require borrowers to pay between 1% to 10% of their income monthly, with forgiveness of any remaining balance after 30 years. The Tiered Standard Plan will have fixed payments based on the loan amount, with repayment periods ranging from 10 to 25 years. Existing borrowers with loans taken before July 1, 2026, will still have access to current repayment plans, but they must act swiftly to avoid automatic changes.