1840-AD98 202510 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 1840 Office of Postsecondary Education OPE 1800 Department of Education ED Reimagining and Improving Student Education (RISE)

The Department intends to propose regulations after completing negotiated rulemaking, to implement the changes made to student loans in the One Big Beautiful Bill. This includes phasing out graduate and professional PLUS Loans; eliminating income contingent repayment (ICR), Pay As You Earn (PAYE), setting loan limits for $20,000 for graduate students and $50,000 for professional students and creating a new loan repayment plan known at the Repayment Assistance Plan.”

]]> Economically Significant First Time Published in The Unified Agenda Completed Actions Yes No Other 34 CFR 674 34 CFR 682 34 CFR 685 Public Law 119-21 Title IV of the Higher Education Act of 1965, as amended Statutory Final 07/04/2025 Many provisions are subject to Public Law 119-21 and are effective upon enactment, on July 1, 2026, on July 1, 2027, or on July 1, 2028. Yes

This rule implements the provisions of the Working Families Tax Cuts Act, codified at Public Law 119-21, including phasing out graduate and professional PLUS Loans, eliminating income contingent repayment (ICR) and Pay As You Earn (PAYE), setting loan limits for $20,000 for graduate students and $50,000 for professional students, and creating a new loan repayment plan known at the Repayment Assistance Plan.

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The Department is conducting this rulemaking pursuant to Public Law 119-21 (the Working Families Tax Cuts Act) and title IV of the Higher Education Act of 1965, as amended, codified at 20 U.S.C. 1070.

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Most of these final regulations implement statutory provisions of the Working Families Tax Cuts Act where the Department does not have discretion. The Department exercised discretion in two areas under the Working Families Tax Cuts where the alternatives considered, discussed in the final rule, have significant impact:
(1) Whether payments in the Repayment Assistance Plan for married borrowers who each have student debt are calculated on each spouse's respective income or on their combined income; and
(2) Defining a professional student, which allows certain degree programs to access higher annual and aggregate loan limits than a graduate program.

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The final regulations change many provisions related to the terms and benefits available to borrowers in the Federal student loan program, resulting in both costs and benefits for students, borrowers, institutions, private companies, and taxpayers. The provisions in the final regulations that produce significant costs or benefits include new annual and aggregate loan limits for graduate and professional students, as well as parents who borrow under the Parent PLUS Program. These anticipated costs and benefits are discussed in the final rule.

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Risks are discussed in the final rule.

]]> Notice of Intent to Commence Negotiated Rulemaking 04/04/2025 90 FR 14741 NPRM 01/30/2026 91 FR 4254 Final Action 05/01/2026 91 FR 23768 Final Action Effective 07/01/2026 YES Businesses Organizations Undetermined No https://www.ed.gov/laws-and-policy/higher-education-laws-and-policy/higher-education-policy/negotiated-rulemaking-for-higher-education-2025-2026 Yes No Tamy Abernathy 1840 Office of Postsecondary Education OPE 202 245-4595 negregnprmhelp@ed.gov 400 Maryland Avenue SW, Washington DC 20202