Student loans will look different in 2026. Here's what's changing.

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Major changes are coming to the federal student loan system in 2026. This overhaul, which primarily stems from the Trump administration's One Big Beautiful Bill Act (OBBBA), will reshape how students borrow and pay back student loans.

These changes will take effect on July 1, 2026, for new loans, but existing borrowers will have a more gradual transition period or retain access to some current options. Here's a closer look at how and when student loans will change and what you can do now to prepare.

Starting on July 1, 2026, the federal student loan system will have a much narrower set of repayment options for new loans. If you borrow after that date, you'll have two repayment plans to choose from:

Tiered Standard Repayment Plan: This plan features fixed monthly payments and spans 10 to 25 years, depending on your loan amount.

Repayment Assistance Plan (RAP): This plan offers an income-driven approach, setting your payments at 1% to 10% of your adjusted gross income (or a flat $10 per month if your income is less

Fuente original: Yahoo Finance (https://finance.yahoo.com/personal-finance/student-loans/article/future-of-student-loans-220915529.html)