Significant changes to U.S. federal student loans will take effect on July 1, 2026, as outlined in the One Big Beautiful Bill Act (OBBBA). Borrowers will have only two repayment options: the Repayment Assistance Plan (RAP), which is income-based, and the Tiered Standard Plan, which provides fixed monthly payments. The RAP allows payments between 1% and 10% of income, with a minimum of $10 per month, while the Tiered Standard Plan offers terms based on the amount borrowed, with repayment periods ranging from 10 to 25 years. Additionally, borrowing limits for parents will be capped at $20,000 per year per child, with a total limit of $65,000. Graduate PLUS loans will be discontinued, although students enrolled before the change can still access them for three more years. Current borrowers on older repayment plans must transition to new options to avoid losing benefits. Financial experts advise families to consider affordability and plan for the long-term impact of these changes.