Understanding the One Big Beautiful Bill Act: Key Insights for Borrowers Ahead of July 2026 Proposals

As of now, nothing is final — but student loan options could soon change dramatically 

Congress is currently negotiating a sweeping student loan reform package that, if passed, could eliminate several current repayment plans, reduce access to forgiveness programs, and raise monthly payments for many borrowers. 

Both the House and Senate have introduced versions of this bill, known informally as the “One Big Beautiful Bill Act.” While no version has passed into law yet, the proposals share enough overlap to suggest that some level of change is likely. 

These are proposed changes only. While both the House and Senate have introduced versions of the bill, nothing has been signed into law, and the final legislation — if passed — could look very different from what’s currently outlined. 

Here’s what borrowers need to understand. 

Understanding the One Big Beautiful Bill Act

Among the most significant proposed changes: 

• Elimination of current IDR plans: PAYE, ICR, REPAYE, and SAVE could be phased out — even for current borrowers. 

• Forced transitions: Borrowers in forbearance or ICR could be automatically moved into IBR within 9 months of the bill's passage. 

• Higher payments: Borrowers shifted into the older 15% IBR plan could see payments increase by 50%. 

• Parent PLUS exclusion: Parent borrowers may lose access to income-driven repayment entirely. 

• Loan limits reduced: Graduate and professional students may face stricter caps on how much they can borrow. 

• PSLF restrictions: Time in medical or dental residency may no longer count toward Public Service Loan Forgiveness. 

Key Insights for Borrowers Ahead of July 2026 Proposals

A key date mentioned in both bill versions is July 1, 2026 — that’s when many of these proposed changes could officially take effect if the bill passes. Some provisions may apply even sooner, depending on the final language and implementation timeline. 

If enacted, these reforms could leave many borrowers with fewer options, higher monthly payments, and greater reliance on private loans. Taking action before that date could help borrowers preserve better repayment terms. 

How TitanPrep Helps You Stay Ahead of The Changes

At TitanPrep, we understand how disruptive major student loan changes can be — especially when they happen fast. Our team keeps track of every update and works directly with clients to protect their file, ensure compliance, and preserve access to affordable repayment and forgiveness options. 

If you’re currently in PAYE, ICR, REPAYE, SAVE, or a Parent PLUS repayment plan, now is the time to review your file and prepare for what may come next. 

The proposed student loan overhaul could mean higher payments, fewer options, and more private loan dependence — unless you act early to protect your repayment options. 

Have questions about how the proposed changes could affect you? Call (800) 547-2258 to stay ahead of the July 1, 2026 proposals.