Opportunity
Federal Register #ED-2025-OPE-0944
Final Regulations: Federal Student Loan Program Changes under the Working Families Tax Cuts Act
Buyer
Department of Education
Posted
May 01, 2026
Identifier
ED-2025-OPE-0944
The Department of Education has issued final regulations updating Federal student loan programs under the Working Families Tax Cuts Act. - Government Buyer: - U.S. Department of Education, Office of Postsecondary Education - No Original Equipment Manufacturers (OEMs) or commercial vendors are involved, as this is a regulatory action - Key Regulatory Changes: - Establishes new loan limits: - Graduate students: $20,500 annual, $100,000 aggregate - Professional students: $50,000 annual, $200,000 aggregate - Parent PLUS loans: $20,000 annual, $65,000 aggregate per dependent undergraduate - Terminates the Grad PLUS program for graduate/professional students effective July 1, 2026 - Introduces new repayment options: - Tiered Standard repayment plan (fixed payments increasing in stages over 10–25 years) - Repayment Assistance Plan (income-driven, with interest subsidy, principal matching, and loan forgiveness after 30 years) - Phases out Income-Contingent Repayment (ICR) plans by July 1, 2028 - Allows borrowers in default to rehabilitate loans twice starting July 1, 2027 - Provides transitional protections for current borrowers - No products, services, part numbers, or purchase quantities are being procured - This is a final rulemaking, not a solicitation or contract opportunity
Description
The Secretary amends the regulations for the Federal student loan programs authorized under title IV of the Higher Education Act (HEA) of 1965 to implement statutory changes included in the Working Families Tax Cuts Act. Key changes include establishing new loan limits for graduate, professional students, and parents; phasing out the Graduate PLUS Program; simplifying repayment plans by phasing out Income-Contingent Repayment plans; creating a new Tiered Standard repayment plan; establishing a new income-driven repayment plan called the Repayment Assistance Plan; and enabling borrowers in default who have previously rehabilitated a loan a second chance to rehabilitate and resume repayment. The final rule is effective July 1, 2026.