CURRENT STUDENT LOANS Please know rules and repayment terms for existing subsidized Stafford loans disbursed before July 1, 2026, do not change, and the established interest subsidy continues to apply for those loans till July 1 2028 On July 1, 2028, you must switch to the new available options or will be auto-enrolled in the Standard Repayment Plan (fixed monthly payments) or the new Repayment Assistance Plan (RAP), which is income-driven If you only have standard or graduated repayment, and are not in an IDR plan, you may not need to change—those plans remain available to some borrowers whose loans were disbursed before July 1, 2026 Existing Parent PLUS borrowers can still consolidate and access some income-driven repayment (IDR) options, but after July 1, 2026, new Parent PLUS loans must be repaid under the standard repayment plan and will not be eligible for RAP or IBR. To maintain flexibility, current Parent PLUS borrowers should consider consolidating and enrolling in an IDR plan (like ICR) before July 1, 2026. After this cutoff date, you will lose the ability to use IDR options for any new Parent PLUS loans. PSLF Still Exists — But With Changes SAVE will no longer count toward PSLF starting August 1, and that date has passed Under SAVE past the Aug 1 deadline your payments will not count toward forgiveness So get on it now Borrowers must use IBR now, then consider switching to RAP when it launches. By July 1, 2028: All borrowers must be in RAP or a qualifying plan, or they’ll be auto-enrolled Please note forgiveness remains tax‑free in 2025 but may be taxable in 2026 barring new legislation .

Posted by Suze at 2025-08-03 13:12:54 UTC