Student loan FAQ: Everything borrowers are asking about the overhaul

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A major overhaul is coming for federal student loan borrowers.

The One Big Beautiful Bill Act (OBBBA) was passed into law last year, but many of the changes related to student loans go into effect starting July 1, 2026. Those changes can affect everything from loan forgiveness eligibility, repayment options, loan limits, and much more.

Whether you're looking to borrow loans for the upcoming school year or you're paying off existing loans, here's what you need to know before July 1.

Here's a look at the two new repayment plans for borrowers:

Tiered Standard Plan: Make fixed monthly payments over a maximum repayment period based on your total outstanding principal balance. Repayment periods range from 10 to 25 years, and payments are at least $50 per month.

Repayment Assistance Plan (RAP): Monthly payments are based on your income and number of dependents. Any remaining balance after 30 years of payments will be forgiven.

If you have any Direct Loan disbursed on or after July 1, 2026, these two plans will be your

Fuente original: Yahoo Finance (https://finance.yahoo.com/personal-finance/student-loans/article/student-loan-faq-everything-borrowers-are-asking-about-the-overhaul-000919610.html)