ED Implements Key Higher Education Provisions from OBBBA
Published July 28, 2025
By AACOM Government Relations
Federal Policy
Financial Aid
Higher Education
OME Advocate
- On July 18, 2025, ED released a Dear Colleague Letter (DCL) announcing the immediate implementation of several higher education provisions from the OBBBA, including changes to Income Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF).
- The IBR changes include the elimination of the partial financial hardship requirement, which expands IBR eligibility to more borrowers and sets payments for these borrowers at 10 percent of discretionary income.
- Updates to PSLF include expanding eligibility to those making payments under the new Repayment Assistance Plan (RAP), which launches by July 1, 2026.
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