The Education Department updated key online guidance for federal student loan borrowers in advance of historic changes to disbursement, repayment, and loan forgiveness that are set to take effect on July 1. The updates provide key points of clarification as millions of borrowers struggle to understand the implications of the looming reforms.

“Understand how the changes to the federal student aid programs will affect your student loans,” said the Education Department in a thread on X on Monday announcing the updates.

The new guidance, which the department released last Friday, summarizes the upcoming regulatory changes that are intended to implement provisions of the One Big, Beautiful Bill Act, which President Donald Trump signed into law nearly a year ago following passage by Republican lawmakers in Congress. The regulatory and statutory reforms will place new limits on federal student loan borrowing, make substantial changes to federal student loan repayment programs, and impose new restrictions on how and when student loans can be forgiven.

Here are some of the key highlights of the new Education Department guidance, and what federal student loan borrowers should know.

Confirmation Of Restrictions On Student Loan Forgiveness Credit Under RAP

The new guidance confirms what the Education Department’s new regulations seemed to suggest, which is that payments made under the Repayment Assistance Plan, or RAP (a new income-driven repayment plan launching in July) cannot count toward student loan forgiveness under other IDR plans.

Historically, payments that are made under one IDR plan can count toward loan forgiveness under other IDR plans if a borrower switches. So, for example, a borrower who has 10 years of credit toward their 25-year repayment term under the ICR plan would retain that 10 years of credit if they transfer to the IBR plan. This has ensured that borrowers who change IDR plans won’t be penalized or forced to start over on their repayment term.

But following a last-minute change to the new regulations, that won’t be the case for RAP. The department confirmed in last week’s updated guidance that payments made under RAP will not count toward student loan forgiveness under the other IDR plans (including IBR) for borrowers who enroll in RAP and later want to switch plans.

“You can switch between any of the plans for which you’re eligible at any time,” says the latest guidance. “However, if you enroll in RAP, any progress (with one........

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