If you’re currently repaying federal student loans, your repayment plan may not be as safe as you think. Under the newly proposed “One Big Beautiful Bill,” millions of borrowers will be forced out of their existing repayment plans by July 2028, sparking growing concerns about higher payments and longer repayment periods.
At first glance, the bill promises to “streamline and simplify” the student loan system. But a deeper dive into the details reveals something very different for borrowers already enrolled in Income-Driven Repayment (IDR) plans like SAVE, IBR, PAYE, REPAYE—or even Parent PLUS borrowers using Income-Contingent Repayment (ICR).
What’s Changing?
Under the Big Beautiful Bill, every federal loan borrower currently in an IDR or ICR plan must switch to a new system by July 1, 2028. That new system? A single repayment option called the Repayment Assistance Plan (RAP).
Here’s the timeline:
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Until June 30, 2028: You can remain on your existing plan.
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Starting July 1, 2028: All borrowers will automatically be transferred to the RAP, ending the availability of plans like SAVE and IBR forever.
And if you’re a new borrower taking out loans after July 1, 2026, you won’t even have the choice. The only options available will be the Standard Plan or the new RAP.
What Is the RAP—and How Is It Different?
The Repayment Assistance Plan (RAP) is designed to replace all previous IDR programs. But while it sounds convenient, the changes aren’t all borrower-friendly:
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Monthly payments will be based on a percentage of your adjusted gross income, not your discretionary income like in the SAVE plan.
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Forgiveness will only come after 30 years of payments, compared to 20–25 years in current plans.
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There’s no income protection for the lowest earners—meaning even very low-income borrowers will still have to pay something each month, with minimum payments possibly starting around $10–$50.
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The interest benefit under SAVE (where unpaid interest isn’t charged) would be scrapped—making it harder to keep balances from ballooning over time.
So even if you’re managing your payments just fine now, this change could lead to higher monthly bills and longer repayment periods starting in 2028.
Parent PLUS Borrowers Beware
Currently, Parent PLUS loan borrowers who consolidate can access Income-Contingent Repayment (ICR). Under the Big Beautiful Bill, they can stay on that plan only until June 30, 2028.
But after that? Just like other borrowers, they’ll be moved into RAP. And starting July 2026, new Parent PLUS loans won’t qualify for any income-driven repayment at all. That means no flexible payments and no forgiveness options, just the rigid Standard or RAP plans.
What Borrowers Should Do Right Now
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Check your current repayment plan. Log into StudentAid.gov or your loan servicer to see if you’re enrolled in SAVE, IBR, REPAYE, PAYE, or ICR.
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Watch the clock. You have until June 30, 2028, to stay in your current plan—but that time will go fast.
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Estimate your future payments under RAP. Use loan calculators to compare what you’re paying now to what you could pay after 2028.
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Contact your lawmakers. If you oppose these changes, the bill hasn’t become law yet—your voice can still influence the outcome.
Bottom Line
The Big Beautiful Bill is a sweeping proposal that would dramatically reshape federal student loan repayment. And while its name may sound lighthearted, the consequences for borrowers could be anything but. If passed, it would eliminate most existing repayment plans, force millions into a single, longer, and possibly more expensive plan, and strip away protections that current borrowers rely on.
