RAP faces new federal loan rules: smaller repayments now, longer debt later, as HELP changes unfold. Current role guides lobbying and policy commentary.
The Education Department has implemented major changes to federal student lending tied to the "One Big Beautiful Bill". The SAVE repayment plan has ended for roughly 7.5 million enrollees, new repayment options and temporary autopay rate cuts begin July 1, and graduate and Parent PLUS borrowing caps have been imposed while courts and agencies dispute which degrees qualify for higher limits.
The Education Department has announced a two-year, temporary 1% reduction in interest rates for Direct Loans issued after July 2012, available to autopay borrowers through June 30, 2028. Eligible borrowers on autopay will see the discount automatically, with action required only for new enrollments by Sept. 30, 2026. The policy forms part of a broad overhaul of repayment plans under the One Big Beautiful Bill Act.
The SAVE repayment plan has ended, affecting about 7.5 million borrowers who must choose a new plan within 90 days. New repayment options are in place, including a Repayment Assistance Plan and a Tiered Standard plan. Graduate and parent borrowers face new caps, and auto-pay rate discounts expire by 2028.