Student Loan Borrowers, Do These 5 Things As The ‘Big, Beautiful Bill’ Takes Effect

By Adam S. Minsky, Senior Contributor
7/15/25

TOPSHOT - US President Donald Trump (C) shows his signature on the
"Big Beautiful Bill Act" at the White House in Washington, DC,on July 4, 2025. The bill will make
substantial changes to federal student loan repayment and forgiveness programs.
(Photo by Brendan SMIALOWSKI / POOL / AFP)
(Photo by BRENDAN SMIALOWSKI/POOL/AFP via Getty Images)

Earlier this month, President Donald Trump signed the so-called “Big, Beautiful Bill ,” a massive budget reconciliation bill passed by Republicans in Congress that will slash taxes and cut government spending, in part by fundamentally reshaping the federal student loan system. Many borrowers currently in repayment on their student loans, as well as prospective students and families with college-bound children, will be impacted, as they will have fewer repayment options and limited student loan forgiveness pathways.

The good news is that while the changes to student loan programs are substantial, many of these reforms are not immediate. Borrowers have at least a little time to take stock of these reforms and the upcoming changes, and prepare for next steps. Here’s what borrowers should be doing.

Budget For Higher Student Loan Payments

Many student loan borrowers will eventually have higher monthly payments as a result of the new legislation. That’s because the bill repeals the SAVE and PAYE plans, two of the most affordable income-driven repayment options. IDR plans allow student loan borrowers to make payments based on a formula applied to their income, with the possibility of student loan forgiveness after 20 or 25 years. The bill also repeals the ICR plan, an older income-driven plan. But Income-Based Repayment, or IBR, would be preserved for current borrowers.

The repeal is not immediate. ICR, SAVE, and PAYE will be phased out by July 1, 2028. By or before that time, borrowers will have to choose between IBR or the Repayment Assistance Plan, a new income-driven option created by the bill. That doesn’t necessarily mean that borrowers will be able to maintain access to the legacy plans for three more years; July 1, 2028 is just the absolute final cutoff date provided under the legislation. But borrowers do have some time.

Many student loan borrowers will see higher payments under both IBR and RAP compared to SAVE or PAYE. For example, an undergraduate borrower with annual income of $60,000 would have a payment of $250 per month under SAVE and $345 per month under PAYE. But under IBR, their payments would be around $520 per month. RAP would be slightly better at around $300 per month. Furthermore, the Big, Beautiful Bill removes the “partial financial hardship” requirement for the IBR plan, which means there will no longer be a cap or ceiling on IBR payments; higher-income borrowers may see higher payments under IBR as a result.

Now is the time to start preparing for higher monthly student loan payments, particularly for borrowers in the SAVE plan. SAVE plan borrowers will almost universally have higher payments under both IBR and RAP. In addition, SAVE plan borrowers may feel more pressure to change plans sooner. For example, those who are pursuing student loan forgiveness (particularly through Public Service Loan Forgiveness) may want to consider switching to IBR now so that they can resume progress, given that the SAVE plan forbearance has blocked loan forgiveness progress. Furthermore, with the recent announcement by the Trump administration that the Department of Education will resume interest charges on student loans enrolled in the SAVE plan starting in August, SAVE plan borrowers may not want to wait to change repayment plans. And if SAVE gets struck down by the courts (which is still a distinct possibility), these borrowers could be forced into a different repayment plan much sooner than expected.

Evaluate The RAP Student Loan Plan

Current student loan borrowers enrolled in any of the existing income-driven repayment plans should spend some time considering whether they will want to switch to IBR or to RAP, the new option created under the bill. RAP has some real benefits, but it also has some significant drawbacks.

The RAP plan uses a different formula than the current income-driven repayment plan options. This ultimately results in the lowest-income borrowers having higher payments under RAP than they would under the existing IDR plans, while many middle and higher income earners would have payments under RAP that could be more affordable than IBR (but not as affordable as SAVE or PAYE). RAP also has some unique benefits including an interest subsidy that will prevent loan balances from ballooning if payments aren’t high enough to cover interest, and a loan principal subsidy of up to $50 per month.

But RAP also has some downsides. Notably, for borrowers not pursing PSLF, RAP has a 30-year repayment term before a borrower could qualify for student loan forgiveness. This means five to 10 additional years in repayment as compared to SAVE, PAYE, and IBR. And while some borrowers will have lower monthly payments under RAP compared to IBR, the cost of those additional years in repayment could ultimately offset those savings. Another downside is that RAP uses a tiered repayment formula, with an increasing percentage of income that is counted toward payments as the borrower’s income rises. But the RAP repayment formula is not tied to inflation, which means that over time, more borrowers will have to pay a higher percentage of their income.

RAP isn’t available yet, so no one can apply. RAP should be launched no later than July 1, 2026. Now is the time for student loan borrowers to consider the pros and cons of RAP so that they can make an informed decision, particularly borrowers who are currently in the SAVE or PAYE plans and will be forced to make a decision as those plans are phased out.

Parent PLUS Borrowers Should Consider Student Loan Consolidation

Parent PLUS loans, a type of federal student loan issued to the parent of an undergraduate student, have always had fewer repayment options compared to other federal student loans. But those options are about to get even narrower under the Big, Beautiful Bill.

In general, Parent PLUS loans are ineligible for income-driven repayment. The exception is that borrowers who consolidate their Parent PLUS loans into a federal Direct consolidation loan can access the ICR plan, the oldest and more expensive of the income-driven options. More recently, some Parent PLUS borrowers were able to “double consolidate” their loans and enroll in SAVE or PAYE.

Under the Big, Beautiful Bill, Parent PLUS borrowers who have already consolidated their loans and enrolled in any existing income-driven repayment plan would be able to switch to the IBR plan by July 1, 2028. This may actually lower the monthly payments for some borrowers, as IBR tends to be more affordable than ICR (although as noted above, it may be more expensive than SAVE or PAYE). But all other Parent PLUS borrowers would be completely cut off from any income-driven repayment option. This would also effectively block Parent PLUS borrowers from most federal student loan forgiveness programs, including PSLF.

Parent PLUS borrowers would have until July 1, 2026 to consolidate their loans in order to be “excepted” under the bill, and they would have to enroll in income-driven repayment before July 1, 2028 to be grandfathered into IBR. This may put some Parent PLUS borrowers in a bind, as income-driven repayment may not be particularly affordable for certain Parent PLUS borrowers based on their present financial circumstances. But taking these steps now could preserve access to income-driven repayment later. Now is the time for Parent PLUS borrowers to consider whether consolidating and enrolling in income-driven repayment may make sense in the long run.

Strategize To Avoid Taking Out New Student Loans Next Year

While repayment plan options are narrowing for all federal student loan borrowers under the Big, Beautiful Bill, they will be even narrower for those who take out new loans on or after July 1, 2026. Doing so would limit borrowers to only the Standard plan and RAP. That means borrowers currently in repayment on their student loans who take out a new federal loan on or after July 1, 2026 would lose access to IBR (and potentially other existing plans, like the Extended or Graduated plan).

This is particularly important for Parent PLUS borrowers. Taking out a new student loan on or after July 1, 2026 would limit Parent PLUS borrowers to only the Standard repayment plan, since even consolidated Parent PLUS loans are ineligible for RAP. These borrowers would, thus, lose access to any income-driven repayment plan option, as well as student loan forgiveness under both IDR and PSLF.

So, current borrowers should be very careful and should try to avoid taking out new federal student loans next year and beyond. If you are thinking about returning to school, or if you are a Parent PLUS borrower with additional college-bound children, this means you may need to make some difficult decisions about whether it’s worth it to rely on costlier and risker private student loans if you can’t pay out of pocket, or whether you should go to a different school (or postpone a degree altogether).

Review Student Loan Dispute Options

The federal student loan system appears to be steadily deteriorating as borrowers face increasing application backlogs and delays, student loan forgiveness counts appear to not be updating properly , and loan servicers are plagued by long call hold times and confusing correspondence. The Big, Beautiful Bill will increase funding for student loan servicers, but it guts funding for the Consumer Financial Protection Bureau, a federal watchdog agency that oversees the financial services sector. And this week, the U.S. Supreme Court allowed the Trump administration to proceed in laying off much of the Department of Education’s staff, impacting units like the Federal Student Aid Ombudsman Group, which has handled borrower disputes.

Taken together, this means that student loan borrowers will have fewer options when things go wrong. Borrowers should be prepared for the possibility that loan servicers, the Department of Education, and the CFPB will be unable to assist with any disputes. Now is the time to start familiarizing yourself with alternative dispute options. These can include state student loan ombudsman offices (many, but not all, states have these), as well as working with your congressperson’s office.

By Adam S. Minsky, Senior Contributor

© 2025 Forbes Media LLC. All Rights Reserved

This Forbes article was legally licensed through AdvisorStream.

Retirement Anxiety Can Make Americans Sick. Here’s Why You Shouldn’t Stress

By Jordyn Bradley
7/17/25 

Key Takeaways

• More than 80% of American savers say they are concerned about retirement, and many worry they won't have enough for a "comfortable" retirement.
• Roughly six of 10 retirement savers said they are concerned their financial stress will negatively impact their health. Studies say the anxiety can lead to headaches, a weakened immune system, and other ailments.
• Financial advisors say savers should consider their situation, make a plan that's right for them, and stick to it to relieve stresses.
  
  
  
  

More than 80% of American savers say they are concerned about retirement, with many reporting feeling physically troubled by financial stress. 

Americans participating in their company’s retirement plan said the sweet spot for retirement savings is about $1.3 million in a new survey by global investment manager Schroders.1 However, nearly half expect to have less than $500,000 in savings at retirement. 

As a result, 56% of employer-sponsored retirement plan participants said they are concerned their financial stress will negatively impact their health, and more than half said they worry about money for at least an hour each day.

“It’s evident that saving for retirement is one of many obligations that’s overwhelming Americans,” said Deb Boyden, head of U.S. defined contribution at Schroders.

Worrying about retirement and other financial stressors can lead to headaches, a weakened immune system, high blood pressure, and trouble sleeping, among other physical effects, according to health insurance provider CareFirst.2 Plus, nearly 70% of Americans report that financial uncertainty has made them feel depressed and anxious, according to a Northwestern Mutual study published in June.3

“It can feel extremely overwhelming when headlines suggest you need a massive nest egg for a comfortable retirement,” said Kourtney Gibson, CEO of retirement solutions at TIAA. “These large figures often don't account for individual circumstances and can create unnecessary anxiety.”

Boyden says the $1.3 million marker might be higher than what many would consider sufficient for a comfortable retirement.

“There is no one-size-fits-all retirement savings number,” Boyden said. “Part of planning for retirement includes an assessment to account for your individual needs and goals in retirement.”

Boyden said it’s important for savers to remember that retirement planning is a marathon, not a sprint, no matter how close or far that target date is.

She said incremental changes to your savings rate, making sure your money in your account is left untouched, and starting to save as soon as possible are all things to keep in mind to push you closer to financial security.

If People Avoid Deep Conversations With You, This Might Be Why

By Ken Druck
7/23/2025

Unsolicited advice shuts people down. Here's what to do to build trust instead.

Key points

·         Unsolicited advice often disrupts emotional connection and leaves others feeling misunderstood.

·         Deep listening builds trust and intimacy, especially during times of pain, loss, or uncertainty.

·         Asking how someone feels can be more supportive than offering a solution or opinion.

There’s a silent killer lurking in even the best of conversations—one that doesn’t come in the form of yelling, name-calling, or finger-pointing. No, this one hides in plain sight, disguised as “help.” It shows up in the form of unsolicited advice. A “You should…” here, a “Why don’t you just…” there. And just like that, the magic of a meaningful conversation evaporates.

I’ve been guilty of it myself. On a walk one morning, I had a moment of clarity about a personal challenge I was facing. I came home ready to share it with my wife—not to be fixed, but simply to be heard. Before I finished my thought, she offered a suggestion. I bristled. Not because I didn’t love or value her input, but because what I needed in that moment wasn’t a solution. I needed her understanding. I needed her to listen. And in that moment, I realized: I’d done the same thing to her countless times.

The Gift of Feeling Understood

There are few things in life as powerful as the feeling of being understood. It’s the oxygen in our relationships, the quiet confirmation that we matter. And it begins with one thing: listening.

Not listening to advise. Not listening to fix. But listening to understand.

In more than four decades of working with families, leaders, and individuals navigating everything from everyday changes and challenges to traumatic loss, I’ve seen this truth again and again: Listening is the heartbeat of trust and support. It’s what keeps our marriages intact, prevents our friendships from crumbling, saves our struggling teens from spiraling, and revitalizes fractured relationships in the workplace.

Listening Is a Practice, Not a Performance

Most of us think we’re good listeners. But let’s be honest: Listening can be difficult. Calming the part of us that loves to jump in with advice, answers, and quick-fix solutions takes restraint. It takes practice slowing down long enough to quiet our own thoughts, judgments, and agendas. The scar tissue on my tongue from biting it shows what a good listener I’ve become.

Exceptional listeners create safe spaces where the speaker doesn’t feel judged, analyzed, or managed. They feel held. Exceptional listeners don’t interrupt with “Yes, but…” or “That reminds me of…” They don’t try to one-up your pain with their own or hijack your story. They ask open-ended questions like:

“What was that like for you?”

“What were you feeling?”

“What are you telling yourself that you should say or do?”

When we stay curious, compassionate, and calm, rather than trying to figure out one another, we feel understood, supported, and even loved.

When “Helping” Hurts

The instinct to give quick-fix clichés and advice often comes from a sincere desire to help. We see someone struggling and want to lessen their pain and suffering. But when our advice is more about our hunger to help or discomfort with the other person’s pain and feeling helpless, we need to chill. We need to just be with someone in their sadness, confusion, or fear, not to fix them.

Healing doesn’t happen in the fixing. It happens in the being with. Resist the urge to take away the pain, soften the blow, or take the spotlight and stop yourself from squandering an opportunity for peace, healing, understanding, and acceptance.

The Wisdom to Know the Difference

Of course, there is a time for advice. There are moments when someone truly wants our input, guidance, direction, and perspective. But how do we know when that time is?

Simple. We ask.

“Would you like my take, or do you just want me to listen?”

“Are you open to hearing a suggestion, or would it feel better for me to just listen?”

And when the answer is “No,” we honor it. We don’t push. We don’t sulk. We respect their boundaries and let things be.

Becoming a Better Listener Starts Right Now

It’s never too late to become a better listener. To catch yourself mid-interruption and bite your tongue when advice is about to slip out. Learn to soften your tone and posture, meet someone’s gaze, and say, “I’m here. And I'd love to hear how you are doing.”

Whether it’s your parents, partner, son, daughter, coworker, or best friend—every day offers us new chances to listen better, love better, and become the most compassionate, communicative version of ourselves.

So, the next time you’re tempted to fix, pause. Breathe and tell yourself, the best thing for me to do right now… is to simply listen.