Major Federal Student Loan Changes Coming in 2026, Including New Repayment Plan and End of Grad PLUS Borrowing

Federal student loan rules are undergoing significant structural changes in 2026, with the new Repayment Assistance Plan (RAP) becoming the default income-driven option for new borrowers, replacing the SAVE plan. Additionally, Grad PLUS borrowing will end for new loans, and new eligibility requirements for Pell Grants will be implemented based on enrollment intensity.