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Reimagining and Improving Student Education-Federal Student Loan Program Final Regulations
Plain English Summary
The federal student loan program has new rules that affect graduate students, professional students, and parents. These changes include new loan limits and the ending of the Graduate PLUS Program. Additionally, the repayment plans have been simplified, with the old Income-Contingent Repayment plans being phased out and replaced by a new Tiered Standard repayment plan and an income-driven option called the Repayment Assistance Plan. Borrowers who have defaulted on their loans will also get another chance to rehabilitate their loans and start repaying them again. Agents should inform their clients about these changes and help them understand their new options.
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The Secretary amends the regulations for the Federal student loan programs authorized under title IV of the Higher Education Act (HEA) of 1965, as amended (the title IV, HEA programs) to implement the statutory changes to the title IV, HEA programs included in Public Law 119-21, the Working Families Tax Cuts Act signed into law by President Trump on July 4, 2025. The Department previously referred to the Working Families Tax Cuts Act as the "One Big Beautiful Bill Act," including in the Notice of Proposed Rulemaking published on January 30, 2026. These changes include establishing new loan limits for graduate students, professional students, and parents, and phasing out the Graduate PLUS (Grad PLUS) Program. The Working Families Tax Cuts Act also simplifies the current broken and confusing myriad of Federal student loan repayment plans by phasing out the existing Income- Contingent Repayment (ICR) plans, creating a new Tiered Standard repayment plan option, and establishing a new income-driven repayment plan known as the Repayment Assistance Plan. The Working Families Tax Cuts Act also enables borrowers in default who have previously rehabilitated a defaulted loan a second chance to rehabilitate their loan(s) and resume repayment.