Strategic Management of Student Debt in the Post-OBBBA Regulatory Environment
The fiscal landscape of higher education in the United States underwent a seismic shift with the signing of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025. This legislation dismantled the previous administration’s Saving on a Valuable Education (SAVE) plan, replacing it with a rigid, tiered repayment architecture. Borrowers now face a 'triple-threat': resumed interest accrual, a looming tax bomb, and the phasing out of income-driven repayment plans in favor of the new Repayment Assistance Plan (RAP).
The OBBBA marks the most significant statutory change in federal student aid policy since the Higher Education Act’s inception. It shifts the system from discretionary forgiveness to a standardized debt-to-term correlation, demanding a nuanced understanding of repayment strategies—from statutory leverage to behavioral automation.
