College students who graduate this spring will enter a radically different federal student loan landscape, following the passage of President Donald Trump’s “big beautiful bill” last year and other recent policy changes. This also touches on aspects of earnings report.

One crucial safety net for student loan borrowers remains intact: Your first bill likely won’t be due until six months after you graduate, thanks to the federal government’s student loan grace period.

But when borrowers begin repayment, they’ll have a different set of choices than graduates in prior years.

College graduates in the Class of 2026 are stepping into a radically different student loan landscape, one with fewer repayment options and stricter rules on debt forgiveness compared to previous years.

The revisions to the federal lending system follow the passage of President Donald Trump’s “big beautiful bill” last year and other policy changes enacted by the Trump administration.

Each year, roughly 2 million students earn bachelor’s degrees, according to the National Center for Education Statistics.

Roughly 60% of those students will have education loans, with an average balance of around $30,000, according to an analysis by higher education expert Mark Kantrowitz. The typical monthly student loan bill is $304.

Here’s what this year’s graduates should know about their federal student loans in light of the recent changes.

You still have 6 months before the first bill is due

One crucial safety net for federal student loan borrowers remains intact: Your first bill likely won’t be due until six months after you graduate, thanks to the government’s grace period, noted Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in Latest York.

Those with federal Perkins Loans can get up to nine months before they need to start repayment.

If your loans are subsidized, the government will pay the interest during the grace period, Kantrowitz commented. Meanwhile, interest will accrue on unsubsidized loans.

“After the grace period, the loan status will switch to ‘In Repayment,'” Nierman mentioned. “This will probably happen around December.”

The exact date will depend on factors including your loan details and your graduation date.

You should mark your calendar for around two weeks before your first payment is due to build sure you don’t miss it, Kantrowitz noted.

Student loan repayment options are changing

Starting in the summer, college graduates should explore which repayment options might be best for them, mentioned Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

The options are shifting: Some plans have disappeared or will, while fresh options are set to launch this July.

The Biden administration-era Saving on a Valuable Education, or SAVE, plan — which came with some of the lowest monthly bills to date — is no longer available. Those graduating in the spring also won’t have access to the new Tiered Standard Plan, the U.S. Department of Education commented.

But starting July 1, borrowers can enroll in the updated Repayment Assistance Plan. Under RAP, monthly payments will typically range from 1% to 10% of your earnings; the more you generate, the bigger your required payment. There will be a minimum monthly payment of $10 for all borrowers.

If all of your student loans were disbursed before July 1 of this year, you’ll also remain eligible for the following plans, according to the Education Department:

Standard Repayment Plan

Graduated Repayment Plan

Extended Repayment Plan

Income-Based Repayment Plan, or IBR

Income-Contingent Repayment Plan, or ICR

Pay as You Earn, or PAYE

“They can read about these plans and adopt a loan calculator to see both the monthly payment and long-term costs at Studentaid.gov,” Mayotte stated.

“It’s vital to not just look at the lowest monthly payment option, but more importantly, the lowest long-term cost options,” she added. “The name of the game is paying the least amount over time.”

Spring graduates who plan to return to school and end up borrowing student loans again, after July 1, will face more limited repayment options, Nierman noted. They will have access only to the new Tiered Standard Plan and RAP, she added.

Federal loan forgiveness rules are tightening

After graduating, you should also see if you’re eligible for any state or federal debt forgiveness programs, consumer advocates remarked.

The Public Service Loan Forgiveness program, signed into law by former President George W. Bush in 2007, allows government and not-for-profit employees to have their federal student loans discharged after 10 years.

But Trump signed an executive order last year that commented borrowers employed by organizations that do work involving “illegal immigration, human smuggling, child trafficking, pervasive damage to public property and disruption of the public order” will “not be eligible” for PSLF. Those changes are expected to go into effect in July, though they face legal challenges.

Consumer advocates have criticized the novel restrictions, saying they could allow Trump officials to build any organization it doesn’t like ineligible for the program. In the meantime, with the PSLF help tool, borrowers can search for a list of employers that still qualify under the program.

Most state-level student debt forgiveness programs offer relief to borrowers in specific occupations, Kantrowitz remarked. For example, the Maine Dental Education Loan Repayment Program offers a total of $100,000 in student loan repayment assistance to dentists in underserved areas of the state.

Other state programs may offer forgiveness based on your finances rather than your occupation.

In Fresh York, the Get On Your Feet Loan Forgiveness Program, rolled out in 2015, allows certain residents to get loan forgiveness for up to 24 months of their payments. Among other qualification requirements, borrowers must have an adjusted gross income of less than $50,000 a year.

The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.