The One Big Beautiful Bill (HR1), signed on July 4, 2025. For students, families and institutions like Beacon College, this bill is significant because it changes some rules related to the federal aid (Title IV) programs.
As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026 and/or with the 2026-2027 FAFSA.
Beacon College encourages 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.
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Current Repayment Plans
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Changes Effective July 1, 2026
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Fixed-Term Plans:
- Standard Repayment
- Graduated Repayment
- Extended Repayment
- Income Sensitive Repayment
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New Standard Repayment Plan
* only 10-year plan qualify for Public Service Loan Forgiveness (PSLF); requires at least 10-years of repayment.
- 10 Years* - Balances <$25,000
- 15 Years - Balances $25,000-$49,000
- 20 Years - Balances $50,000-$99,000
- 25 Years - Balances $100,000+
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Income-Driven Plans (IDR)
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Saving on a Valuable Education (SAVE)
- Income-Contingent Repayment (ICR)
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Income-Based Repayment Assistance Plan (RAP):
- Monthly payment: 1% to 10% of 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 interests)
- Payments count toward PSLF
Borrower's AGI - Monthly Payment
- $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
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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 1, 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.
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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 – we do too!
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.