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Recent and looming changes to the U.S. Department of Education’s student loan repayment plans will affect whether and when millions of borrowers get their debt canceled.
The new rules on the government’s income-driven repayment plans, or IDRs, stem from President Donald Trump’s One Big Beautiful Bill Act and other policy developments.
“We are encouraging all borrowers to evaluate their repayment options on which plan is going to be best for them moving forward,” said Landon Warmund, a certified financial planner and certified student loan professional at Reliant Financial Services in Kansas City, Missouri.
“Proactive planning is always key, and between now and July 1 is the time to do that,” said Warmund, who is also a member of CNBC’s Financial Advisor Council.
Congress created the first IDR plans in the 1990s to make student loan borrowers’ bills more affordable. Historically, the plans cap people’s monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
More than 12.5 million student loan borrowers were enrolled in IDR plans in the first quarter of 2026, according to an analysis by higher education expert Mark Kantrowitz.
Over 42 million Americans hold student loans, and the outstanding debt exceeds $1.6 trillion, according to the Congressional Research Service.
Here’s what to know about getting your student debt forgiven amid all the moving parts.
Plans that will lead to debt forgiveness: IBR and RAP
An IDR plan that still concludes in student loan forgiveness is the Income-Based Repayment plan, or IBR, Kantrowitz said.
IBR will be the best option for many borrowers looking for another affordable repayment option now that the SAVE plan is unavailable — and until the new plan, RAP, rolls out this summer. A federal appeals court ended the Biden administration-era SAVE, or Saving on a Valuable Education plan, earlier this year.
Under the terms of IBR, borrowers pay 10% of their discretionary income each month if their loans were taken out on or after July 1, 2024. That share rises to 15% for borrowers with loans before that date. The newer borrowers are eligible for debt forgiveness after 20 years, and older borrowers after 25 years.
The Trump administration recently made an update to IBR, as well: Previously, student loan borrowers needed to prove “partial financial hardship” to get into the plan, or an income below a certain level. That requirement is now waived, the Education Department said in April.
While the Income-Contingent Repayment plan, or ICR, and PAYE, or the Pay as You Earn plan, remain available to borrowers for a period, neither program culminates in debt forgiveness anymore.
The only reason you’d want to be in either plan, then, is if it brings you the lowest monthly payment, said Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York.
If that’s the case, you can remain in ICR or PAYE until the plans expire on July 1, 2028. Afterward, if you switch into IBR or the Repayment Assistance Plan, or RAP, you should get credit toward forgiveness for your previous payments.
“You will need to transition plans by 2028, but you can still benefit from those lower payments,” Rodriguez said.
Starting on July 1, student loan borrowers can also work toward student loan forgiveness on the RAP plan.
The more you earn under RAP, the bigger your required monthly payment will be. Bills will typically range from 1% to 10% of your earnings. There will also be a minimum monthly payment of $10 for all borrowers. Under other IDR plans, certain low-income borrowers are entitled to a $0 monthly payment.
RAP enrollees won’t be eligible for student loan forgiveness until they’ve been making payments for 30 years, compared with the typical 20-year or 25-year timeline on other IDR plans. As a result, experts say borrowers will have to weigh their monthly payments under different plans against the waiting period until forgiveness and decide what is more meaningful to them: a lower bill or a shorter window to debt relief.
One other important thing to note: It’s unclear whether you’ll get credit toward forgiveness for time spent in RAP if you later transfer to another IDR plan, according to several experts’ interpretation of the new law. The U.S. Department of Education did not respond to a request for comment on that detail.
Current borrowers will maintain access to some existing repayment plans, including IBR. But those who borrow after July 1, 2026, will have just two options: RAP and a tweaked Standard Repayment Plan that doesn’t include any debt-forgiveness component.
A faster way to student loan forgiveness: PSLF
Waiting years or even decades for student loan forgiveness may feel daunting. As a result, it’s also worth checking whether you’re eligible for a federal or state debt-relief program, consumer advocates say.
Signed into law in 2007 by President George W. Bush, the Public Service Loan Forgiveness program offers debt cancellation to nonprofit and government workers after a decade.
“If you are pursuing PSLF, it doesn’t matter which IDR plan you are in, as the PSLF program offers a 10-year path to forgiveness regardless of the plan,” said Nancy Nierman, assistant director at EDCAP.
“Borrowers who have options should just choose the cheapest plan,” Nierman said.
Another option for educators is the Teacher Loan Forgiveness program, which offers up to $17,500 in loan cancellation to those who work in low-income schools and fulfill other requirements.
Experts also recommend borrowers explore the many state-level relief programs available. The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.
