Starting July 1, 2026, Republicans’ “Big Ugly Bill” will raise costs for students by:
Limiting students’ access to federal student loans: The “Big Ugly Bill” caps Parent PLUS loans and unsubsidized loans for graduate or professional programs (based on definitions set by the Education Department) and eliminates Graduate PLUS loans.
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Prospective and current students with questions about these changes can view more specific information on the Department's relevant "updates" page or the Federal Student Aid's website. Each institution’s financial aid office is also able to answer students’ questions.
Eliminating repayment plans: For borrowers, the bill eliminates existing income-driven repayment (IDR) plans and replaces them with the Repayment Assistance Plan (RAP). Changes to individual borrower repayment plans in the immediate future will depend on a number of factors.
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For example, the Department has indicated that most borrowers who are currently in repayment will not obtain new loans after July 1, 2026 and are able to stay in their existing IDR plans until July 1, 2028. However, if they’re in the Savings on a Valuable Education (SAVE) plan, which was created by the Biden Administration but has since been eliminated, borrowers must take action to change their plan. Further, per the “Big Ugly Bill,” borrowers with new loans after July 1, 2026 will only have access to a single IDR plan (Repayment Assistance Plan) that would increase payments for most borrowers.
Borrowers with questions about how these changes apply to them should view information available at this Department of Education fact sheet or see general information at Federal Student Aid's website. Further, the Department has indicated that borrowers who were enrolled in the SAVE plan should expect to hear from their servicers on next steps starting on July 1, 2026, and those currently in other IDR plans should ask their loan servicer concerning ways to move forward.
For more information on how the “Big Ugly Bill” made college more expensive, click here.
