Recent Changes and Challenges in Federal Student Loan Policies

1 min read
Source: FSA Partner Connect (.gov)
TL;DR Summary

The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduces immediate changes to federal student loan programs, including removing the partial financial hardship requirement for income-based repayment plans, allowing certain consolidation loan borrowers to enroll in IBR, reducing annual loan limits for part-time students, and amending the Public Service Loan Forgiveness program to include payments under the new Repayment Assistance Plan. It also delays the implementation of certain Biden Administration regulations related to borrower defense and closed school discharges, restoring previous regulations for loans before July 1, 2035.

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