Significant alterations to the U.S. Department of Education’s income-driven repayment (IDR) plans are reshaping the landscape for millions of student loan borrowers seeking debt cancellation. These recent and upcoming changes, stemming in part from President Donald Trump’s One Big Beautiful Bill Act, necessitate that borrowers thoroughly evaluate their repayment options to determine the most suitable path forward, according to certified student loan professional Landon Warmund.

Among the plans that continue to offer a route to debt forgiveness is the Income-Based Repayment (IBR) plan. This option is anticipated to be crucial for many borrowers, especially with the Biden administration-era SAVE plan no longer available and before the new Repayment Assistance Plan (RAP) fully rolls out. Under IBR, monthly payments are capped at 10% of discretionary income for loans taken out on or after July 1, 2024, leading to forgiveness after 20 years. For loans predating this date, payments are 15% of discretionary income with forgiveness after 25 years. A notable recent update by the Trump administration has waived the previous requirement for borrowers to demonstrate “partial financial hardship” to qualify for IBR. While the Income-Contingent Repayment (ICR) plan and Pay as You Earn (PAYE) plan remain accessible for a period, they no longer lead to debt forgiveness and are generally only recommended if they offer the lowest monthly payment until their expiration on July 1, 2028.

Starting July 1, the new Repayment Assistance Plan (RAP) will also become available, featuring variable monthly payments ranging from 1% to 10% of earnings, with a minimum payment of $10. However, borrowers under RAP will typically need to make payments for 30 years before becoming eligible for forgiveness, a longer timeframe compared to other IDR plans. This presents a trade-off for borrowers, balancing lower potential monthly payments against an extended period until debt relief. For those who borrow after July 1, 2026, options will be further streamlined to just RAP and a revised Standard Repayment Plan that does not include a debt-forgiveness component.

Beyond IDR plans, faster routes to debt relief exist. The Public Service Loan Forgiveness (PSLF) program, enacted in 2007, offers debt cancellation to eligible nonprofit and government employees after 10 years of qualifying payments, regardless of their specific IDR plan. Additionally, the Teacher Loan Forgiveness program provides up to $17,500 in loan cancellation for educators in low-income schools who meet specific criteria. Experts also recommend exploring numerous state-level relief programs, with resources like the Institute of Student Loan Advisors offering comprehensive databases for such opportunities.