Right now, the student loan system is undergoing major shifts due to the "One Big Beautiful Bill Act" (OBBBA), restructuring repayment plans, ending some popular ones (PAYE/ICR), and creating new options, with phased implementation until 2028, while also pausing default collections and tax refund seizures to give borrowers breathing room amidst post-pandemic payment restarts and ongoing SAVE Plan legal issues. Millions are still adjusting to payments, facing potential enrollment in new plans, and dealing with confusion, all while federal debt nears $1.8 trillion.
The One Big Beautiful Bill Act, passed by Congress in July, makes several changes to borrowing and repayment of federal student loans, including reducing the number of repayment plans, lowering caps on borrowing limits for some graduate students and implementing a new income-driven repayment plan.
You can access your federal student loan information—including your loan and/or grant amounts, outstanding balances, loan statuses, disbursements, and servicer information—by logging in to your StudentAid.gov account. You can contact your servicer directly with questions regarding your federal student loans.
Millions of student loan borrowers have been struggling to keep up with their payments in recent months while, at the same time, the student loan landscape is in a state of upheaval. Congress's reconciliation bill last summer dismantled the current repayment program menu and created a new one.
You qualify for student loan forgiveness through specific federal programs like Public Service Loan Forgiveness (PSLF) for government/non-profit workers, Income-Driven Repayment (IDR) Forgiveness after 20-25 years, and targeted relief for defrauded students (Borrower Defense) or the totally and permanently disabled, with new Biden-era rules also helping long-term borrowers, those with significant balance growth, or those who didn't finish school. Eligibility hinges on having federal loans and meeting specific work, payment, or circumstance requirements.
Trump's tax and spending package phases out the Income-Contingent Repayment plan, or ICR, and the Pay as You Earn plan, or PAYE, as of July 1, 2028. Starting July 1, 2026, student loan borrowers will have access to another IDR option, the Repayment Assistance Plan, or RAP.
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.
In a pair of recent cases, the U.S. Supreme Court ruled on the Biden administration's student loan forgiveness program. In Biden v. Nebraska, which was decided 6-3, the court struck down the administration's student loan forgiveness program and agreed with the six challenging states that they had standing to sue.
If you stopped paying your student loans and your loans went into default more than 7 years ago, they can disappear from your credit report.
Plan 1: For students who started university before 2012. Loans are written off after 25 years or when you turn 65, depending on when you borrowed. Plan 2: For those who started from 2012 onwards. Written off 30 years after you first became due to repay.
There is no income limit for any student loan forgiveness program offered by the Education Department.
Federal borrowing limits are tightening
Starting on July 1, 2026, the borrowing limits for certain federal student loan types will change. The new rules will be: Graduate students: Up to $20,500 per year with a lifetime limit of $100,000 in Direct Unsubsidized Loans.
Only federal student loans with an outstanding balance as of June 30, 2022, are eligible. Students who are enrolling after June 30, 2022 and who have loans with first disbursements after June 30, 2022 are not eligible for this forgiveness.
Interest began accruing under this forbearance on Aug. 1, 2025. This forbearance will last until the legal situation changes or servicers are able to send bills to borrowers at the appropriate monthly amount. Furthermore, time spent in this general forbearance will not count for PSLF or IDR forgiveness.
Cancellation & Forgiveness Options