Student Loan Repayment Overhaul: Key Changes for 2026
Federal student loan borrowers face significant changes in 2026 as the "One Big Beautiful Bill" introduces two new repayment options, reshaping the existing system. The legislation will affect both current borrowers and those still in school, marking a complete overhaul of repayment structures.
The Saving for a Valuable Education (SAVE) plan is slated for discontinuation following a lawsuit settlement, pending judicial approval. With 7.7 million borrowers currently enrolled—many in extended forbearance—the shutdown will force millions to transition to alternative plans. Experts advise proactive evaluation of new options despite the 2026 deadline.
Scott Buchanan of the Student Loan Servicing Alliance emphasizes the need for borrower vigilance. "Understanding the nuances of these changes is critical," he notes, highlighting potential benefits for those who navigate the transition effectively.
