The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025. For students, families, and institutions like JMU, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Some of those changes impact Federal Direct Loans for both undergraduates and graduate students.
We encourage any borrower who is currently in repayment of their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview and there may be other details a current borrower in repayment will want to consider before deciding on how to proceed.
Current Repayment Plans (before July 1st, 2026)
- Fixed-Term Plans:
- Standard Repayment
- Graduated Repayment
- Extended Repayment
- Income Sensitive Repayment
- Income-Driven Plans (IDR):
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Saving on a Valuable Education (SAVE)
- Replaced Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
Changes Effective July 1st, 2026
-
New Standard Repayment Plan:
- Four Fixed-Terms:
- 10 years: balances <$25,000
- 15 years: balances between $25,000–$49,999
- 20 years: balances between $50,000–$99,999
- 25 years: balances $100,000+
- Only 10-year plans qualify for Public Service Loan Forgiveness (PSLF). Note: PSLF requires at least 10 years of repayment.
- Four Fixed-Terms:
-
New Income-Based Repayment Assistance Plan (RAP):
- Monthly payment: 1%–10% of Adjusted Gross Income (AGI)
- $10 minimum payment
- $50 deduction per dependent
- 30-year repayment term; forgiveness after 30 years
- No negative amortization (balances won't grow when payments don't cover interest)
- Payments count toward PSLF
| Borrowers' AGI | Monthly Payment |
| Less than $10,000 | $10/month |
| $10,000 - $19,999 | 1% of monthly AGI |
| $20,000 - $29,999 | 2% of monthly AGI |
| $30,000 - $39,999 | 3% of monthly AGI |
| $40,000 - $49,999 | 4% of monthly AGI |
| $50,000 - $59,999 | 5% of monthly AGI |
| $60,000 - $69,999 | 6% of monthly AGI |
| $70,000 - $79,999 | 7% of monthly AGI |
| $80,000 - $89,999 | 8% of monthly AGI |
| $90,000 - $99,999 | 9% of monthly AGI |
| $100,000+ | 10% of monthly AGI |
Current Borrowers
- IBR borrowers may remain in their plan
- All other non-Parent PLUS IDR borrowers must choose a new plan by July 1, 2028 or be moved to RAP
- Parent PLUS loan borrowers will be moved to the new Standard Plan after July 1st, 2028 unless they consolidate and enroll in an IDR before July 1, 2026. Doing so means they can remain in IBR for the duration of the repayment period.
The One Big Beautiful Bill Act introduces significant changes to federal student aid programs, and while some provisions are clear, many others require further clarification from the U.S. Department of Education.
We understand that students, families, and staff have questions—and so do we.
As we receive more guidance and official updates, we will continue to revise and expand this webpage to reflect the most accurate and actionable information available.
Other Federal Loan Updates
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Fri 8 a.m. - 12 p.m.
