What are the main student loan changes 2026 to watch?

A proposed settlement would end SAVE and start RAP on July 1, 2026, alongside borrowing caps for graduate and Parent PLUS loans. Many borrowers could face higher monthly payments. Meanwhile, IBR eligibility already expanded, offering near‑term relief. Investors should watch private lending growth, servicer updates, and final rulemaking timelines.

How did IBR eligibility change on December 23?

The Education Department dropped the partial‑hardship test to enter Income‑Based Repayment, expanding access to higher‑income borrowers. This can lower monthly payments and clarify forgiveness timelines under current rules. Borrowers should compare IBR to existing plans and recertify income as needed. This update arrives ahead of broader student loan changes 2026.

What is RAP student loan and when could it start?

RAP is a new income‑driven plan expected to replace SAVE if a proposed settlement is finalized. The target start is July 1, 2026. Early indications suggest payments may be higher than SAVE for many. Final terms will come through rulemaking, so borrowers should follow servicer notices through 2025–2026.

Will SAVE plan ending raise my monthly payment?

It could. Early outlines suggest many borrowers will pay more under RAP than under SAVE, especially as incomes rise. The impact varies by household income, family size, and debt level. Run comparisons once final rules are published, and budget for mid‑2026 changes while using IBR expansion where it helps today.

Global Market Insights

December 23: IBR Expanded as SAVE Ends; RAP Overhaul Ahead in 2026

ByHuzaifa Zahoor December 23, 2025December 23, 2025

Student loan changes 2026 are coming into focus after a key December 23 update. The Education Department expanded IBR eligibility by dropping the partial‑hardship test, while a proposed settlement would end SAVE and start RAP with borrowing caps on July 1, 2026. We break down who benefits now, what could change in 2026, and why this matters for spending, banks, private lenders, and education finance exposure across the US economy.