The student loan you took out might be subject to changes, as lawmakers in Washington overhaul payment plans. A few to know about:
- As part of the recently signed tax and spending act, the US Department of Education (ED) is changing or phasing out some existing student loan repayment programs. They also introduced a new income-driven repayment plan, called RAP (Repayment Assistance Plan), in effect as of July 1, 2026.
- Borrowers on SAVE will have a 90-day window starting July 1 to select a new repayment plan or be automatically enrolled in the Standard Repayment Plan or the new Tiered Standard Plan, which is not tied to income and spreads out your fixed payments over different terms (10, 15, 20, or 25 years) based on how much you owe. This could result in a change of your current monthly payment.
- Borrowers on other phased-out repayment plans, such as Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE), have until July 1, 2028 to enroll in a new plan.
- As of June 2026, wage garnishment for federal loan borrowers in default has been delayed while the ED implements student loan repayment reforms.
- Federal student loan borrowers enrolled in autopay by September 30, 2026 are eligible for a 1% rate reduction through June 30, 2028, up from the current 0.25% rate break for enrolling in autopay.
For now, it's best to contact your student loan servicer to find out what payments are expected of you, if any. In the meantime, keep reading to feel empowered to take control of what you can.
1. Explore career-focused repayment and forgiveness programs
Based on your career and/or degree, you may qualify for student loans that offer lower interest rates and/or longer grace periods for repayment than the standard options. You may even be able to score forgiveness. These programs include:
- Public Service Loan Forgiveness Program, for which employees of federal, state, local, tribal, or nonprofit organizations may qualify
- The Federal Student Loan Repayment Program, for which employees of federal agencies may qualify
- The Teacher Loan Forgiveness Program, for eligible teachers who work in low-income schools or educational service agencies
- The Department of Justice Attorney Student Loan Repayment Program, for eligible attorneys who are selected for a 3-year period of service with the Department of Justice
- The Veterinary Medicine Loan Repayment Program, for eligible veterinarians who commit to a 3-year period of service in a designated veterinary shortage area
- National Health Service Corps Loan Repayment Programs, for certain health professionals
- Student loan repayment programs, for certain dental professionals
You're not out of luck if your industry isn't on this list. Smaller career-focused programs are out there, and your school may even offer loans for certain degrees of study. It's worth an online search to check.
Plus, your employer may offer a student debt assistance benefit. Check with your human resources department to find out if one is available to you.
2. Get your budget in shape
No matter what plan you're on, budgeting for your student loan monthly payments could help you make sure you cover them. You could start with a budgeting tool, such as Fidelity's budget worksheet, or use a simple spreadsheet. Write out your monthly income counting all the money coming in on a regular basis, after taxes and any retirement contributions are taken out. Then, list out your monthly expenses. Fidelity has a simple budgeting guide.
If your student loan payment takes a big chunk of each paycheck, consider trying these ways to save on groceries, rent, utilities, gas, commuting, dining out, and health care.
3. Prioritize debt payoff wisely
Getting your debt under control can be complicated if you have multiple loans or kinds of debt. That’s where these suggestions fit in:
- Compare the 2 general approaches to paying off debt: Snowball vs. avalanche
- Find out how investing fits in with paying off debt
4. Mind your credit
Student loans affect your credit score. Reported missed payments could drop your score, making it more difficult and expensive to borrow money in the future. Generally, depending on your loan, missing 3 payments could prompt your lender to report your delinquency to the credit bureaus, and being more than 270 days late may put your loan into default.1 Delinquency and default look a lot worse on your credit report than a late payment, so you'll want to avoid reaching either status.
If extenuating circumstances make it impossible for you to make your monthly payments, you could submit a request to your loan servicer for deferment—a temporary pause on loan payments—or forbearance, a pause on or reduction of payments. The new tax and spending act has changed some of the details for borrowers, including eliminating economic hardship and unemployment deferments for federal loans that begin disbursing on or after July 1, 2027.