Federal Student Loan Repayment Plans Updated, Affecting Millions

New federal student loan repayment plan changes, stemming from the One Big Beautiful Bill Act, are now impacting approximately 13 million borrowers. The updates revise eligibility for the Income-Based Repayment (IBR) Plan, allowing more borrowers to enroll without partial financial hardship. Additionally, Parent PLUS borrowers who consolidated before July 1, 2026, and made an Income-Contingent Repayment (ICR) payment before July 1, 2028, can switch to IBR, offering a path to loan forgiveness as ICR phases out.