The One Big Beautiful Bill just passed both houses of Congress. This major legislation changes how student loan repayment works. As a physician, you need to understand these changes now.
Current Borrowers: Your Repayment Plan Status
Most physicians can breathe easier. If you’re already on Old IBR or New IBR, you stay put. Your payments don’t change. Your forgiveness timeline stays the same.
PAYE borrowers face a different situation. The government will move you to Old IBR sometime between mid-2026 and 2028. This transition happens automatically. You don’t need to do anything right now.
SAVE plan borrowers currently in forbearance will get kicked out soon. The exact date remains unclear. You’ll move to either Old IBR or New IBR. The government bases this decision on when you first borrowed loans.
Parent PLUS Borrowers: Act Before July 2026
Parent PLUS borrowers dodged a major bullet. The original bill would have hurt all Parent PLUS borrowers. The final version only affects those who don’t act quickly.
You must consolidate your Parent PLUS loans before July 1, 2026. After consolidation, sign up for any income-driven repayment plan. The system will automatically move you to IBR. This outcome is much better than the original proposal.
Did you apply for ICR recently during the chaos? You can override that application. Simply apply for IBR at studentaid.gov/idr instead.
Current Medical Students: Plan Ahead
Current medical students have time to prepare. Nothing changes until July 1, 2026. This gives you about a year to plan your finances.
After July 2026, new borrowing rules kick in. Loan limits become much stricter. Professional school borrowing gets especially tight restrictions.
Future Medical Students: Major Changes Coming
The math completely changes for anyone starting medical school after July 1, 2026. Federal loan limits will be much lower. Graduate school borrowing faces severe caps.
Future medical students must plan differently. You’ll need more private loans or family funding. Income-driven repayment plans won’t provide the same relief they do today.
The New RAP Plan: Limited Benefits
The bill creates a new repayment plan called RAP. This plan has some good features. Interest subsidies help when your payment is less than your interest. Payment rates slide from 1% to 10% of income for earners under $100,000.
RAP allows married couples to file taxes separately. This can lower payments for some physicians.
However, RAP has major drawbacks. Once you switch to RAP, you can’t switch back. Private sector forgiveness takes 30 years instead of the current 20-25 years.
Old IBR might actually be better than RAP for many physician families. IBR charges 15% of discretionary income, while RAP charges 10% of adjusted gross income. But IBR gives larger family size deductions before applying the 15% rate.
Key Action Items for Physicians
Parent PLUS borrowers must consolidate before July 1, 2026. This is your most urgent deadline.
Current medical students should maximize federal borrowing before July 2026. After that date, federal options become much more limited.
Future medical students need new financial strategies. Start planning alternative funding sources now.
Most other physicians can continue with their current repayment plans. The changes don’t affect existing Old IBR and New IBR borrowers.
Bottom Line
The One Big Beautiful Bill creates a mixed bag for physicians. Current borrowers mostly keep their benefits. Parent PLUS borrowers get a reprieve if they act quickly. Future medical students face much tougher borrowing conditions.
The key is timing. Know your deadlines. Understand which changes affect your specific situation. Don’t panic about changes that don’t apply to you.
Most physicians can focus on their patients instead of worrying about these loan changes. The bill preserves existing benefits for current borrowers while limiting future borrowing options.
This post is for informational purposes only and does not constitute investment advice. Always conduct thorough research and consult with financial professionals before making investment decisions.
About the Author: Dr. BWMD is a practicing physician and parent who writes about the intersection of medicine and personal finance. When not seeing patients or writing about physician finances, he enjoys spending time with his family and teaching the next generation of medical professionals about the importance of financial wellness.
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