OBBBA student loan timeline (2025-2028)
Every key date in the 2025-2028 federal repayment overhaul.
The One Big Beautiful Bill Act (OBBBA) was signed July 4, 2025. The big repayment changes land July 1, 2026, when the Repayment Assistance Plan (RAP) and the new tiered Standard plan launch and become the only options for new borrowers. By July 1, 2028, SAVE, PAYE and ICR are eliminated and borrowers must move to IBR or RAP. General information, not advice - verify dates at studentaid.gov.
Source: Federal Student Aid - OBBBA updates. Data as of June 2026.
General information, not financial or legal advice. Federal student loan rules are changing in 2025-2026 under the One Big Beautiful Bill Act - figures here are estimates from public sources and the final program rules are still being implemented. Always verify with your loan servicer and studentaid.gov. See our disclaimer.
Key dates
| Date | What happens |
|---|---|
| July 4, 2025 | OBBBA (Public Law 119-21) signed into law. PSLF amended so RAP payments count; IBR partial-hardship entry requirement removed (effective on enactment). |
| 2025-2026 | SAVE plan blocked then vacated by the courts; interest resumed on SAVE in August 2025. SAVE is being wound down. |
| July 1, 2026 | RAP and the new tiered Standard plan become available. New loan limits take effect; Grad PLUS ends for new borrowers. Borrowers whose first loan is on/after this date can use only RAP or the new Standard plan. |
| Within ~90 days after July 1, 2026 | SAVE borrowers must choose a new plan (IBR or RAP) or be reassigned to a Standard/tiered Standard plan. |
| July 1, 2028 | ICR, PAYE and SAVE are eliminated for all borrowers. Anyone still on them must have moved to IBR or RAP. |
Source: U.S. Dept of Education - Simplifying Student Loan Repayment. Data as of June 2026.
Frequently asked questions
When was the One Big Beautiful Bill Act signed?
OBBBA (Public Law 119-21) was signed into law on July 4, 2025. Some loan provisions were effective on enactment (such as letting RAP payments count toward PSLF and removing the IBR partial-hardship requirement); most repayment changes take effect July 1, 2026.
What is the deadline to switch off SAVE, PAYE or ICR?
ICR, PAYE and SAVE are eliminated by July 1, 2028. SAVE borrowers face an earlier prompt: after July 1, 2026 they have roughly 90 days to choose a new plan or be reassigned. Confirm your exact deadline with your servicer.
What happens to borrowers who do nothing?
If you do not actively choose a plan, you can be moved to a default plan (Standard or the new tiered Standard), which is not income-driven and does not count toward PSLF. To keep an income-driven path or PSLF progress, choose IBR or RAP before your deadline.
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Last updated: 2026-06-22