This week, changes to federal student loans under the Trump administration’s One Big Beautiful Bill Act became official and the clock began to tick on a 90-day window to select a new repayment plan and avoid getting one assigned.
July 1 marked the end of the Biden-era SAVE Plan, a repayment option that offered minimum monthly payments, loan forgiveness options and had placed many borrowers on forbearance with no payments due until further notice.
Changes also included the end of Grad PLUS loans for new graduate student borrowers, as part of a controversial push to disincentivize borrowing more than necessary for programs that might not yield high wages.
Some of these changes are currently being challenged in court, including new loan limits to graduate students and taking borrowers off the SAVE Plan.
For those with outstanding loans, including those whose loans had been placed on a repayment hold, or forbearance, there’s been confusing messaging over what to do to get those repayment plans switched over to the new options before borrowers are assigned a new plan.
The process is less than straightforward, but here’s what we know right now about how to select a new repayment plan:
Get to know your options
There are multiple repayment options under two main plans: the Fixed Repayment Plan and the Income Driven Repayment Plan. Your types of loans, outstanding balance and employment status are some of what will be considered for your options.
Fixed Repayment Plans include some “standard” options to repay your balance between 10-30 years with a fixed monthly payment. Under some fixed plans there is a gradual payment increase, usually every two years, to pay off the balance sooner and with less interest accrued.
There’s also a Tiered Standard Plan, a 10-year fixed monthly payment plan that will likely result in higher monthly payments. Those that don’t select a plan within 90 days from July 1, 2026, might end up on this plan.
The new rules did away with previous income-driven repayment plans, replacing them instead with new Income Driven Plans.
These plans will assign a monthly payment based on your annual income and family size. The monthly payment is recalculated each year to account for any life or income changes.
To be placed on an Income Driven Plan there are multiple options, including a Repayment Assistance Plan and Income Based Repayment Plan, you must submit an application online and confirm your current annual income with either your most recent tax return or recent payment stubs.
The Public Service Loan Forgiveness program is still available to those employed full-time by certain government or nonprofit organizations. The program forgives the remaining balance of your loans after reaching 120 qualifying monthly payments.
Estimate your monthly payment
The Federal Student Aid website has a Repayment Calculator that allows you to estimate a monthly payment under the different repayment plans available now.
The tool will ask you to input your loan information, including type of loan, total balance and interest rate. You can use this tool to be better informed before calling your loan service provider or before submitting your application for a specific plan.
There are seven different federal student loan service providers, and knowing who is servicing your loan is key to processing your new application. Representatives should be able to explain what options are available for your type of loan, since not every repayment plan option offered by the tool might be available to you.
They will also provide you with updates once you submit your application.
Contact your loan servicer
First of all, know who your loan servicer is. There are seven government servicers who handle student loans and they will help you select a repayment plan.
It’s important to update your contact information with your loan servicer and keep an eye out for communication. They will issue updates on the status of your application as well as any changes to your repayment plan based on these court challenges, especially for those previously under the SAVE Plan.
Wait times to get a hold of a representative might be long at the moment given the deadline. But it’s important to review your options with a representative because not every option provided by the online calculator might be available for your type of loan.
To apply for a Public Service Loan Forgiveness plan you can submit your application using a specific help tool and employer search, to guide you through the process. Your loan servicer can also guide you through the application.
The San Antonio Report partners with Open Campus on higher education coverage.
