A Repayment Assistance Plan starts July 1, 2026 with forgiveness at 360 payments
What the document says“the Secretary shall carry out an income-based repayment plan (to be known as the `Repayment Assistance Plan')”
The section adds a new subsection (q) to section 455 of the Higher Education Act of 1965 requiring the Secretary, from July 1, 2026, to run an income-based Repayment Assistance Plan. The monthly amount is the applicable monthly payment, applied first to interest, then fees, then principal, with unpaid principal deferred. The borrower pays until the balance is zero or 360 qualifying monthly payments are made, and the Secretary must then cancel any balance left. Eligibility is checked yearly under the section 493C procedures.
What the document actually says“the Secretary shall carry out an income-based repayment plan (to be known as the `Repayment Assistance Plan')”
The Secretary must run a new plan. It is called the Repayment Assistance Plan. Payments turn on what the borrower earns.
The plan starts on July 1, 2026. The borrower pays for 360 months at most. Anything still owed is then wiped out.
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