Trump student-loan overhaul: DOE drops IBR hardship test in December; caps grad borrowing next July
The Department of Education/Federal Student Aid will finish implementing changes in December that remove the “partial financial hardship” requirement to enroll in Income‑Based Repayment (IBR), a move that can let higher earners newly qualify, while also eliminating the SAVE plan and phasing out PAYE and ICR. IBR payments remain capped at the equivalent of the 10‑year standard plan with existing calculation percentages unchanged (generally 10% for new borrowers after July 1, 2014; 15% for older loans), and borrowers with eligible loans before July 1, 2026 can access IBR/ICR/PAYE on or after that date — FSA urges consolidations be completed at least three months prior.
📌 Key Facts
- The U.S. Department of Education and Federal Student Aid will finish implementing changes in December 2025 that remove the 'partial financial hardship' requirement to enroll in Income-Based Repayment (IBR).
- Removing the hardship test will allow some higher earners who previously did not qualify to access IBR.
- The administration's package eliminates the SAVE plan and phases out the PAYE and ICR repayment plans.
- Borrowers with eligible loans disbursed before July 1, 2026 can access IBR, ICR or PAYE on or after July 1, 2026; FSA urges borrowers to complete any required loan consolidations at least three months before that date.
- IBR payments will remain capped at the equivalent of the 10-year standard repayment amount, and the underlying payment calculation percentages are unchanged (generally 10% for new borrowers after July 1, 2014, and 15% for older loans).
📊 Relevant Data
Over the past 20 years, 50% of Black student loan borrowers, 40% of Hispanic or Latino borrowers, and 29% of White borrowers have experienced a loan default.
The Student Loan Default Divide: Racial Inequities Play a Role — Pew Charitable Trusts
In 2022, the registered nurse workforce was composed of 80% White, 7.4% Asian, 6.3% Black/African American, and 2.5% more than one race individuals.
Nursing Workforce Fact Sheet — American Association of Colleges of Nursing
From 2020 to 2022, the percentage of men in the nursing workforce increased from 9.4% to 11.2%, meaning approximately 88.8% were women in 2022.
Nursing Workforce Fact Sheet — American Association of Colleges of Nursing
Over half (52%) of Black student loan borrowers have at least $25,000 in student loan debt from their own education, compared to 41% of White borrowers and 47% of Hispanic borrowers.
2024 Student Loan Debt by Race — BestColleges
📰 Sources (2)
- DOE/FSA will finish implementing changes in December that remove the 'partial financial hardship' requirement to enroll in Income-Based Repayment (IBR).
- SAVE will be eliminated and PAYE/ICR will be phased out under the new package.
- Borrowers with eligible loans before July 1, 2026 can access IBR/ICR/PAYE on or after July 1, 2026; FSA urges consolidations be completed at least three months prior.
- IBR payments remain capped at the equivalent of the 10-year standard plan; payment calculation percentages (generally 10% for new borrowers after July 1, 2014; 15% for older loans) are unchanged.
- Higher earners can newly qualify for IBR once the hardship requirement is removed.