EPISODE RESOURCES

RISE Student Loan Regulations Fact Sheet

...I Just Lost $33,709 Episode

Repayment Assistance Plan Explained

Finalized DOE Student Loan Rules: New Caps, Repayment Assistance Plan, and Default Rehab Changes (Effective 2026–2027)

In this episode we share newly finalized Department of Education regulations tied to the Working Families Tax Cuts Act and explain how they may affect student loan borrowers starting in 2026–2027. We outline new federal loan caps beginning July 1, 2026: graduate loans limited to $20,500 annually/$100,000 total; professional programs (11 fields including law, medicine, dentistry, and clinical psychology) to $50,000 annually/$200,000 total; and Parent PLUS capped at $20,000 annually/$65,000 per dependent, plus a $257,500 lifetime limit for new borrowers. We also cover repayment changes including a new Repayment Assistance Plan becoming the only income-driven option for first-time borrowers after July 1, 2026, a tiered 10–25 year standard plan, expanded loan rehabilitation to twice per loan with IDR opt-in at agreement signing, revised forbearance limits, sunsetting certain deferments for loans after July 1, 2027, and new institutional and part-time borrowing rules, warning current borrowers to be cautious about taking new loans.

00:00 New Rules Overview
00:20 Community Updates
01:36 Fact Sheet Breakdown
02:24 Graduate Loan Caps
03:13 Professional Degree Definition
04:53 Parent PLUS Limits
07:10 Lifetime Borrowing Cap
07:54 Repayment Plan Overhaul
09:17 Tiered Standard Plan
10:41 Default Rehab Changes
13:04 Deferment Forbearance Shifts
14:01 School Part Time Limits
15:16 Key Takeaways Next Steps