Starting in 2026, the way millions of Americans repay their federal student loans could change significantly under a new plan from House Republicans.

The proposed overhaul, titled the Student Success and Taxpayer Savings Plan, was unveiled in late April as part of a broader push to fund upcoming tax cuts. If passed, the plan would streamline the current repayment system, narrowing the dozen or so existing repayment options down to just two.

Borrowers would choose between a traditional fixed repayment term lasting between 10 and 25 years, or a new income-driven repayment option called the Repayment Assistance Plan (RAP). Under the RAP system, monthly payments would be tied to a borrower’s income. The more you earn, the higher your payment—starting at just 1% of income and scaling up to 10% as earnings increase.

One of the most notable differences from current repayment plans is the extension of the forgiveness timeline. Instead of the 20- to 25-year window currently available under most income-driven repayment plans, the RAP option wouldn’t forgive any remaining debt until 30 years of payments have been made.

In addition, new borrowers would no longer benefit from income protection thresholds, which currently shield a portion of their income from being included in repayment calculations. While this makes payments potentially higher for low- to middle-income borrowers, the GOP plan offers a few incentives. Interest would be waived on qualifying payments, and parents would receive a $50 monthly discount per child.

This proposed change, set to go into effect July 1, 2026, is still in the legislative phase. However, if passed into law, it would mark a sweeping shift in how the U.S. handles student debt—aiming to simplify repayment while also limiting future costs to taxpayers.

As debate over the plan continues in Washington, borrowers should stay informed and begin assessing how these changes could affect their personal repayment strategy in the years ahead.