If you’ve already got student loan debt, here’s a piece of good news you can hold on to: President Trump’s sweeping new reform—dubbed the “Big Beautiful Bill”—won’t change your repayment plan. Thanks to a ruling on June 25 from Senate parliamentarian Elizabeth MacDonough, major cuts and changes to existing student loan repayment options won’t apply to current borrowers.
So, if you’re already repaying your student loans—or planning to soon—you won’t be forced into the new repayment system Republicans have been pushing.
Why this matters
Republicans in Congress have been working to simplify the student loan repayment system by narrowing it down to just two options: a fixed payment plan based on loan size and a new income-based “Repayment Assistance Plan.” While that might sound streamlined, it would’ve wiped out other flexible repayment choices that many borrowers rely on today, especially those with lower incomes.
However, McDonough stepped in and said that under Senate budget rules, this type of policy change can only apply to new borrowers. That means the more than 40 million Americans currently managing student debt won’t be pushed into a stricter system.
Why the parliamentarian’s ruling matters
The Senate is trying to pass the “Big Beautiful Bill” under a process called budget reconciliation. This allows the bill to pass with just 50 votes instead of the usual 60, but every piece of the legislation must directly affect the federal budget.
MacDonough’s job is to enforce that rule. She’s already rejected several parts of the bill that didn’t fit the criteria, including plans to tighten Medicaid rules and increase immigration enforcement. Her ruling on student loans is just the latest in a series of pushbacks.
What’s still changing
Although your loan repayment plan is safe, the bill could still bring big changes to federal student aid for future borrowers. Some of the proposals that got scrapped include:
- Blocking some non-U.S. citizens from getting federal financial aid
- Eliminating loan relief for doctors and dentists
- Expanding Pell Grants to include short-term job training programs
If Republicans want to push these ideas through, they’ll need at least 60 votes in the Senate—which means some Democratic support.
Biden’s SAVE plan still uncertain
Meanwhile, around 8 million borrowers enrolled in President Biden’s SAVE repayment plan are still in limbo. A court ruling is expected soon to decide if the program can continue. For now, though, borrowers in SAVE don’t need to change anything.
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Bottom line
If you’re already repaying student loans, the Senate’s decision means you can breathe easier. The GOP’s plan to narrow repayment options won’t touch your existing debt. But stay tuned—new borrowers and future students may face a very different system.
