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Major July 1, 2026 Federal Student Loan Repayment Changes
What Financial Advisors Need to Know CSLA Board of Standards | July 2, 2026 Yesterday marked a major dividing line in federal student loan repayment p...
On November 15, 2024, the Department of Education announced an amendment to the regulations governing income-contingent repayment (ICR) plans available to Federal student loan borrowers.
The scope of this rule changes the end date for most borrowers to enroll in ICR or Pay as You Earn (PAYE) plans from July 1, 2024, to July 1, 2027.
The Department of Education indicates that this time-limited change to eligibility restrictions that went into effect on July 1, 2024, will allow the Department to meet its statutory obligations to offer borrowers access to the ICR plan while it undertakes the necessary administrative changes to make its repayment plans compliant with the terms of an injunction from the U.S. Court of Appeals for the Eighth Circuit.
The interim rule is slated for early implementation, effective 30 days from publication.
Further, ED indicates that it anticipates being ready to process borrower applications for these plans as of December 16, 2024.
More information is here: https://www.federalregister.gov/documents/2024/11/15/2024-26698/income-contingent-repayment-plan-options
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