For borrowers working toward Public Service Loan Forgiveness (PSLF), the One Big Beautiful Bill Act brings an important change to the federal student loan repayment system.
The good news is that PSLF is not going away. The basic promise remains the same. Eligible borrowers who work full time for a qualifying public service employer can have the remaining balance on their eligible Direct Loans forgiven after making 120 qualifying monthly payments, or roughly 10 years of qualifying payments.
However, the repayment plan a borrower uses can determine whether those payments count toward PSLF. The One Big Beautiful Bill changes that landscape by adding the new Repayment Assistance Plan, or RAP, as a repayment option that can count toward PSLF.
The 10-year PSLF benefit remains
The One Big Beautiful Bill Act does not change the basic 120-payment requirement for PSLF.
Under the program, borrowers generally must:
- Have eligible federal Direct Loans
- Work 30 hours a week for a qualifying public service employer
- Make 120 qualifying monthly payments
- Make those payments while meeting the program’s other eligibility requirements
Once those requirements are met, the remaining eligible loan balance can be forgiven.
For many borrowers, the important question is not whether PSLF still exists, but which repayment plan they should use to continue earning qualifying payments.
The biggest PSLF change: RAP payments can count
Section 82004 of the One Big Beautiful Bill Act specifically amends the law governing PSLF to allow on-time payments made under the new Repayment Assistance Plan (RAP) to count as qualifying PSLF payments.
RAP is a new income-driven repayment plan created by the legislation. Which became available July 1, 2026.
This matters because borrowers pursuing PSLF need to make qualifying payments while working in public service. Adding RAP to the list of repayment plans that can qualify gives eligible borrowers another way to continue working toward loan forgiveness.
In other words, the 10-year clock for PSLF has not been eliminated. The bill changes one of the ways borrowers can make payments that count toward that clock.
Christina A. Randell-Walker and her Student Loan Advisors stated that, “Individuals researching student loan repayment solutions are excited to discover that inexpensive options are available to sometimes lower their payment by 90% at My Education Solutions.”
What borrowers pursuing PSLF should do now
If you are working toward PSLF, the changes make it more important than ever to keep track of your loans, employment and qualifying payments.
Consider taking these steps:
- Check your loan types. PSLF applies to eligible Direct Loans. If you are unsure which loans you have, review your federal student loan information.
- Confirm your employer qualifies. PSLF eligibility is based on your employer, not simply your job title. Government employers and certain nonprofit organizations may qualify.
- Keep your employment certification current. Regularly documenting qualifying employment can help you keep track of your progress toward 120 payments.
- Review your repayment plan. If you are pursuing PSLF, make sure you understand whether your current or future repayment plan allows your payments to count.
- Pay attention to transition deadlines. Borrowers affected by the changes to existing repayment plans may need to select a new plan as older plans are phased out.
- Don’t assume that every month counts. A payment only helps you reach PSLF after it meets the program’s requirements for a qualifying payment.
PSLF is still a 10-year path to forgiveness, but the path is changing
The One Big Beautiful Bill does not end Public Service Loan Forgiveness or change the basic 120-payment requirement.
Instead, it changes the repayment system surrounding PSLF.
The addition of RAP means eligible borrowers can make qualifying on-time payments under the new plan. At the same time, the phaseout of several existing repayment plans means borrowers need to pay closer attention to which plan they are using and how changes could affect their progress toward forgiveness.
For borrowers who have already spent years working toward PSLF, understanding these changes could be especially important. A repayment plan that worked in the past may not remain available indefinitely.
Need help understanding your student loan options?
Federal student loan rules are changing, and choosing a repayment plan can have long-term consequences, particularly for borrowers pursuing Public Service Loan Forgiveness.
My Education Solutions can help you understand your student loan options and identify questions you should consider as you evaluate your repayment strategy.
Don’t wait until a repayment plan changes to find out how it could affect your path to student loan forgiveness. Contact My Education Solutions to learn more about your options.
