Student Loans: What to Do Right Now

The student loan system is in the middle of major changes, but not everything is happening at once. That means you don’t need to make every decision today. What you do need is a clear sense of the landscape, the deadlines, and how your choices may play out over time.

• You don’t need to act immediately—but key dates are on the horizon.
  
• Long-term Income-Driven Repayment options are narrowing to RAP or IBR.
  
• Parent PLUS borrowers should pay close attention to July 1, 2026 and July 1, 2028 deadlines.
  
• Administrative backlogs are slowing applications; some rejections are expected.
  
• PSLF rules may shift in 2026, but past credit will remain safe.
  

Take a Breath

It’s natural to feel anxious with so much changing, but the truth is you still have time to make informed choices. These shifts are significant, but they’re phasing in over the next few years. The smartest thing you can do right now is to get informed, weigh your options, and begin penciling in a plan.

• Learn what your likely repayment options will be.
  
• Run the numbers on different scenarios.
  
• Set reminders for deadlines and recertifications so nothing sneaks up on you.
  

Your Likely Choices: RAP vs. IBR

When the dust settles, most borrowers will end up choosing between RAP (Repayment Assistance Plan) and IBR (Income-Based Repayment). Each plan has strengths and weaknesses, and which one is best depends on your income, family size, loan history, and forgiveness goals.

RAP (Repayment Assistance Plan)

• Offers an interest subsidy to prevent your balance from ballooning.
  
• Includes a small principal subsidy in some cases.
  
• Requires a $10 minimum payment—no $0 option.
  
• Stretches repayment over 30 years, much longer than other plans.
  
• Becomes the only IDR option for new borrowers or consolidations after July 1, 2026.
  

IBR (Income-Based Repayment)

• Remains available to existing borrowers.
  
• Has two versions, depending on whether you borrowed before or after July 2014.
  
• For many, can provide more affordable payments or faster forgiveness than RAP.
  

Backlogs & Billing Issues

Another challenge right now is administrative: millions of borrowers are facing delays, denials, or confusing notices. Even those eager to pay are stuck waiting for applications to process. This can feel unfair, but knowing what to expect helps you plan.

• About 1.3 million IDR applications are in the backlog.
  
• Older applications that chose SAVE or “lowest payment” will likely be denied.
  
• Even with approvals, billing schedules and autopay setups can be inconsistent.
  

If you’re wondering whether to reapply, it comes down to timing. If you’re close to forgiveness milestones, reapplying may speed things up—even if your new payment is higher. But if your income has increased, sticking with your pending application may lock in a lower payment.

Parent PLUS: Two Hard Deadlines

Parent PLUS borrowers face a narrower path. RAP isn’t available to you, and ICR is being phased out. That means consolidation followed by IBR is the only long-term option, and the timeline is strict.

• By July 1, 2026: Consolidation must be completed (not just submitted). Processing takes 6–8 weeks, so plan to start 3–4 months earlier.
  
• By July 1, 2028: You must be enrolled in IBR. Current guidance says you’ll first need to enroll in ICR, make one payment, then switch into IBR.
  

For Parent PLUS borrowers working in public service, these deadlines are critical. Without consolidation and IBR, PSLF will no longer be accessible.

PSLF Buyback: Slow but Moving

The buyback process is alive and working—but very slowly. Some borrowers are receiving approvals, but the backlog has grown to tens of thousands of applications.

• Wait times are months long.
  
• A common strategy is to “hedge”: keep your buyback request active while also enrolling in a plan that keeps you moving toward forgiveness.
  

What to Watch Next

Beyond repayment and forgiveness, there are other changes in motion. Staying aware of these can prevent surprises.

• The disability discharge system has recently transitioned and may cause issues.
  
• The Department of Education is drafting regulations to flesh out RAP and phase out other IDR plans.
  
• Wage garnishment for borrowers in default has resumed.
  

Action Plan

At this stage, clarity and organization matter more than quick action. Here’s what you can do in a short session:

1. Gather your loan details (types, balances, servicers).
   
2. Decide what matters most: lowest monthly payment, fastest forgiveness, or minimizing total cost.
   
3. If pursuing PSLF, count your qualifying payments and consider hedging strategies.
   
4. If you have Parent PLUS loans, mark July 1, 2026 and July 1, 2028 now and plan consolidation early.
   
5. Compare IBR and RAP side by side to see which fits your finances and goals.
   
6. Set annual reminders for recertification and policy check-ins.
   

These changes are significant, but they don’t all arrive at once. You have time to weigh your choices and create a path that aligns with your financial life. The key is to stay informed, plan around the deadlines, and make decisions that balance affordability, forgiveness opportunities, and peace of mind.