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Office of Student Loan Advocacy: Announcements

Announcements: Recent changes & updates to your student loans

Last updated 5/15/2026.

Learn about important student loan changes and updates that may affect you:

I have federal student loans:

  • The U.S. Department of Education (ED) and Department of the Treasury have announced a new partnership. On March 19, 2026, ED announced the Department of Treasury (PDF) will begin taking on a larger role in handling some of the operations of federal student loans. What this means for you:
    • There are no changes to loan terms, interest rates, or repayment plans.
    • Existing borrower benefits and protections remain the same.
    • Any changes to how loans are managed will happen gradually over time. 
    • More information will be shared as updates become available.
       
  • A lot of changes are happening with your federal student loans. Borrowers can take the following steps to protect themselves:
    • Document your loan information and payment history: Borrowers should go to StudentAid.gov and download your student loan information and payment history documents.
    • Screenshot your progress towards forgiveness: Borrowers should now see a payment tracker on their Federal Student Aid portal that allows them to see their progress towards forgiveness under Public Service Loan Forgiveness (PSLF). Make sure to screenshot this page for your records.
    • Check for correspondence from Federal Student Aid and your servicer: check your email, mail, and servicer website often for updates regarding your account, including repayment status and upcoming due dates.
    • Stay Updated on Federal Student Loan Changes. Check out the Education Debt Consumer Assistance Program’s page on What’s Changing With Student Loans — And When.
    • Report any issues with your loan servicer: If something doesn’t seem right with your student loan account, submit a student loan question or complaint to our office.

I have defaulted student loans:

I have loans under the SAVE forbearance

  • The U.S. Court of Appeals for the 8th Circuit has issued a ruling that the Saving on a Valuable Education (SAVE) Plan is not a legally authorized repayment plan and will be discontinued. Beginning July 1, federal loan servicers will send notices to borrowers currently enrolled in the SAVE Plan with instructions on selecting a new, eligible repayment option. 
  • What this means for you:
    • You will not be able to stay in the SAVE plan for long. You will need to enroll in a different repayment plan soon, possibly within 90 days of July 1, 2026.
    • You will receive a notice from your servicer about your specific 90-day deadline to select a different repayment plan.
    • You will have 90 days from the date of your notice to choose a new repayment plan.
    • If you do not select a plan within that timeframe, you will be automatically enrolled in the Standard Repayment Plan, which often has much higher payments than SAVE.
  • Our office strongly recommends SAVE borrowers start exploring their other repayment options as soon as possible. Check out this guide to help you understand your options: Transitioning From the SAVE Repayment Plan - EDCAPNY.org.
  • Stay informed: Get updates and more information on the U.S. Dept. of Education's website.

I'm pursuing Public Service Loan Forgiveness (PSLF)

  • Please be advised that our office cannot speed up the processing of your PSLF Buyback request/application.
  • There is a large backlog of unprocessed PSLF Buyback requests. The U.S. Dept. of Education reported that the PSLF Buyback backlog grew to over 88,000 requests as of March 31, 2026, and that only 3,280 PSLF Buyback requests were processed in the month of March.
  • There is no estimate at this time for how long it will take for requests to be processed. Please do not submit duplicate requests. 
  • Action Options:
    1. Apply for another PSLF qualifying repayment plan.
      • Pros: Continue to make payments toward forgiveness. May lead to forgiveness faster. These paymnets would also reduce the number of months you need to Buyback.
      • Cons: Monthly payments may be higher than what buying back those older months would be.
    2. Contact your student loan servicer and request to be placed on a discretionary forbearance while you wait for Buyback processing.
      • Pros: No monthly payments would be required, giving time to save up for the Buyback amount.
      • Cons: Interest accrues, and forbearance doesn't count toward PSLF. There is a limit on the amount of time you can spend in a discretionary forbearance, and Buyback processing time is still unknown. Your Buyback application could be denied, and you may need to resume repayment at that point to reach forgiveness.
      • Note: PSLF Buyback amounts for the SAVE forbearance time will NOT be calculated using the SAVE plan formula. This means that payments for those months will likely be higher than you may have expected when you applied for Buyback.
  • Looking for information about Public Service Loan Forgiveness (PSLF)? Visit WSAC's PSLF page to learn more about loan forgiveness for eligible government and nonprofit employees.

I’m currently in or plan on applying for an Income-Driven Repayment (IDR) plan

  • Borrowers applying for or switching to IDR plans may experience processing delays.
    • Applying through your StudentAid.gov account and providing consent to access your most recent federal tax return may result in faster processing.
  • Forgiveness under IDR is now considered taxable income. Starting January 1, 2026, any loan balances forgiven under IDR plans may be treated as taxable income by the federal government.
    • Borrowers who met the requirements for loan forgiveness by the end of 2025 will not pay taxes on it, even if their loan discharge is in 2026. 
    • Borrowers who qualify for forgiveness will receive a notice and will have 30 days to choose to opt out.
    • If you’re close to IDR forgiveness, we recommend talking to a certified tax professional. They can help you understand your taxes and find ways to lower what you owe as your forgiveness date nears.

I want to understand the impact of the One Big Beautiful Act on my student loans

  • The One Big Beautiful Act (OBBBA), signed into law on July 4, 2025, will have a significant effect on student loan borrowers’ repayment and forgiveness options. The bill phases out the SAVE, PAYE, and ICR plans and introduces the new Repayment Assistance Plan (RAP). It also limits repayment options for Parent PLUS borrowers.
    • Prior to OBBBA, borrowers were required to have partial financial hardship to enroll in the IBR Plan. OBBBA removes that requirement.
    • If all your loans were disbursed or consolidated before July 1, 2026, you will be eligible for:
      • a new IDR plan called RAP, which will be available on or after July 1, 2026;
      • a modified version of the IBR plan (with no income eligibility requirement); or
      • the existing Standard, Graduated, or Extended plans.
      • If you are in ICR or PAYE, you must move into one of the above-listed plans by July 1, 2028.
      • Many borrowers will have higher payments under IBR and RAP as compared to SAVE or PAYE. You can use this chart to estimate your RAP payments.
    • If any of your loans will be disbursed or consolidated on or after July 1, 2026:
      • Only two plans will be available: a new Tiered Standard plan and a new IDR plan called the Repayment Assistance Plan (RAP).
      • The ICR, PAYE, SAVE, IBR, old Standard, Extended, and Graduated plans will not be available.

I currently have or plan on borrowing Parent PLUS loans

  • Limited Parent PLUS Options. Parent PLUS borrowers may need to act prior to April 30, 2026:
    • Parent PLUS debt is NOT eligible for the new Repayment Assistance Plan (RAP). This includes any Consolidation Loans, including “double consolidated” loans that include any Parent PLUS loans. 
    • Repayment options for Parent PLUS Loans will be limited for both current and future borrowers. 
    • Borrowers with Parent PLUS loans may need to act to retain access to Income-Driven Repayment (IDR) plans. After July 1, 2026, unconsolidated, new, or reconsolidated Parent PLUS loans will only qualify for the new Tiered Standard Repayment plan, which means higher monthly payments and no forgiveness options, like Income-Driven Repayment Forgiveness or Public Service Loan Forgiveness.
    • For more information, including specific steps to take, check out the Parent PLUS Checklist & Resource Guide - EDCAPNY.org (PDF).
  • Risks of borrowing any federal loans on or after July 1, 2026, for parent borrowers:
    • If you take out or consolidate any federal loans on or after July 1, 2026, your Parent PLUS Loans, Consolidation Loans that included any Parent PLUS Loans, and “double consolidated” Parent PLUS loans will be restricted to the new Tiered Standard plan. 
    • In most cases, this will block you from pursuing PSLF for these loan types as you will not have access to a PSLF-qualifying repayment plan. This will also block you from pursuing IDR forgiveness. 

Learn more about the Office of Student Loan Advocacy.