Do you have student loan debt?

More than 42 million Americans collectively owe over $1.7 trillion in federal and private student loans, with nearly 60% paying an average of $300 per month¹

Whether you are a recent graduate, a young professional or parents with Parent PLUS loans, these numbers reflect the financial challenges you face, especially when there are already so many competing priorities for your money, including the rising cost of living and an ever-shifting economy. At Voya we know the weight of debt and its effect on people’s mental, emotional and financial health.

The One Big Beautiful Bill brings sweeping changes

Student Loan update: This bill was signed into law on July 4, 2025, and reshapes the student loan landscape and new repayment strategies. Here is a snapshot:

What’s changing

New Repayment Assistance Plan (RAP) ^2,3

• Launches July 1, 2026³
• Only two repayment options for new borrowers: Standard or Income-Based (RAP)²
• Current borrowers can opt-in to RAP or remain on some older plans⁴
• RAP bases payments on total adjusted gross income (AGI)⁴
• Auto-enrollment: Borrowers without a selected plan by July 1, 2028, will be placed in RAP³
• RAP benefits: Interest waivers and up to $50/month principal reduction³
• Default support: Loan rehabilitation allowed twice³

Minimum monthly payments

• Designed to lower payments and simplify forgiveness tracking³
• All borrowers must pay at least $10/month, regardless of income³
• Many middle-income borrowers will pay less under RAP than older plans⁶

Simplified repayment for future borrowers

• Starting July 1, 2026, new borrowers will enter a streamlined repayment system with fewer plan options and clearer forgiveness pathways*⁵

Grad PLUS loans

• Grad Plus eliminated³
• New borrowing caps for graduate and professional students to reduce debt³

Parent PLUS loans

• Capped borrowing for students and parents helping to reduce lifetime debt³
• Limited to standard repayment³
• Excluded from Income-Driven Repayment (IDR) plans³
• Only eligible for Income-Based Repayment (IBR) if consolidated before July 1, 2026, and enrolled in IDR by July 1, 2028³
• Not eligible for RAP³

End of SAVE and other IDR plans

• Existing repayment plans (ICR, PAYE, SAVE) will be phased out by July 1, 2028, and are currently paused due to court challenges. Only IBR and RAP will remain^2,3
• Interest resumed for SAVE plan borrowers on August 1, 2025; payments still paused^2,3
• SAVE borrowers must switch plans or risk ballooning interest⁴

Expanded relief options

• Forgiveness is still available, but with stricter repayment rules²
• RAP offers automatic interest waivers, small principal reductions³
• Forgiveness is now available for 30 years — longer than current 10–25-year plans³
• Stricter standards for relief due to school misconduct or closure³

Employer contributions

• Employers can now permanently contribute up to $5,250/year tax-free toward employee student loans. Employees do not pay income tax on these contributions.² Please note, employers must offer this as part of their benefits package. Check with your employer to see if this is available.

We can help show you how to take back control — with real, doable strategies that fit your life, your goals, and your budget. While the system may be shifting, your future doesn’t have to be on hold. It’s about having a plan. Here are some ways to start paying off student loans and save for your future:

Strategies to help get you started

Track your numbers: Facing debt is your first act of power. Know what you owe and how much it is costing you. If you have loans now, little is changing immediately — but make sure all of your contact information is up to date on studentaid.gov and with your loan servicers and keep an eye out for coming changes.³

Explore Income-Driven Repayment (IDR) Plans like Income-Based Repayment (IBR) or Repayment Assistance Plan (RAP) plans.³

Review your budget to look for more ways to save and include tools and apps that prioritize debt repayment. If you are currently enrolled in the SAVE plan, you should also expect that once that plan is dropped, your monthly payments will likely increase.³

Consider using the Student Loan Simulator to estimate your monthly payment in Income-Based Repayment (IBR), since that plan will remain available to current borrowers. You may want to begin thinking about whether there are changes you can make to your budget to accommodate a higher monthly student loan payment.³

If you find the payments will be too much, refinance your loans if eligible, especially for those of you with strong credit and stable income. For individuals with existing loans, obtaining additional or consolidated loans after July 1, 2026, may result in less favorable repayment options.³

Finally, if you have Parent PLUS loans, consider whether it makes sense to consolidate those loans before July 1, 2026, and enroll in the Income-Contingent Repayment (ICR) plan to preserve your eligibility to make payments based on your income.³

Check with your employer, they may offer a student loan debt aid benefit. They may also have tuition reimbursement you can consider. This could offset how much debt you carry if you are still attending school while you work.

Seek professional advice from certified student loan counselors or financial professionals.

You’re making progress

Every action brings you nearer to getting out of debt. You’ve made progress since the beginning of the year — acknowledge it and keep going.

Stay informed with current news and updates from your loan providers, as student loan policies change frequently and up-to-date information can help guide your decisions.

Take the next step

You can use our partnership with Savi Student Loan Guidance to access tools that help manage your student loans, including checking eligibility for repayment plans and forgiveness programs.

Once you visit the link above, you can take control of your student debt in just minutes.

Follow these 3 easy steps

1. Share a little about you and your loans
2. Compare your repayment and forgiveness options
3. Decide what is best for you and if it feels right, upgrade to premium services for 1:1 support from Savi student loan experts

Be patient; progress takes time. Manage your money wisely by saving as you reduce debt. With planning and persistence, you'll become debt free and able to save more for the future.

Note: This article is not comprehensive. For updates and details on the One Big Beautiful Bill, visit GovTrack.us and search for student loans.