Lower student loan bills may be coming — even for high earners

Student loan borrowers may soon qualify for lower monthly payments due to updates to the Income-Based Repayment (IBR) Plan. The changes come from the One Big Beautiful Bill Act, expanding eligibility to a wider range of borrowers, including those with higher incomes. The Department of Education is updating its system, expecting completion this month, and will process held IBR applications then. New applicants might need to wait several months for lower payments, with July 1, 2026, as the full access date. The changes also involve scrapping other repayment plans like SAVE, ICR, and PAYE. Borrowers from these plans can switch to IBR, potentially seeing varied payment impacts. Monthly IBR payments are based on 10% or 15% of discretionary income, depending on the loan's origination date. However, Parent PLUS and unconsolidated Perkins loan borrowers remain excluded from the IBR plan.