How SDS Is Responding to the July 1 Repayment Changes

The federal student loan system changed on July 1, and SDS has been updating our platform, recommendations, and borrower guidance to reflect the new repayment landscape.

Our goal is simple: borrowers should not be guided by outdated repayment assumptions. When federal rules change, plan recommendations must change with them.

SDS has updated its review process to better distinguish between borrowers with existing loans, borrowers taking new loans, and borrowers considering consolidation after July 1. This distinction is now critical because current borrowers may retain access to certain legacy repayment options, while new loans and new consolidations may be limited to the newer repayment framework.

SDS is also incorporating the new Repayment Assistance Plan, known as RAP, and the new Tiered Standard repayment plan into borrower-facing plan analysis. The Department of Education has confirmed that RAP and Tiered Standard became available beginning July 1, 2026. RAP is based on income and dependents, while Tiered Standard uses fixed repayment terms of 10, 15, 20, or 25 years based on the borrower’s loan balance.

We are also paying close attention to consolidation logic. Consolidation can still be useful for some borrowers, but after July 1 it can also change repayment eligibility. SDS is working to make sure borrowers understand when consolidation may help, when it may limit access to older repayment options, and when preserving the existing loan structure may be more important than chasing the lowest short-term payment.

For borrowers currently enrolled in SAVE, SDS is also updating guidance around the transition process. SAVE borrowers are beginning to receive notices requiring them to select a new repayment plan, generally within 90 days of receiving notice. Because notices are being sent in waves, the timing may vary by borrower and servicer.

In practical terms, SDS users may see updated plan recommendations, revised warnings around consolidation, new repayment comparisons, and temporary document-preparation messaging where federal forms or servicer processes are still catching up to the new rules.

This is exactly why SDS exists. Student loan decisions are not one-size-fits-all, and July 1 made that even more true. The lowest payment is not always the safest option. The fastest action is not always the best action. And a plan created before a major policy change should be reviewed before it is executed.

If you are an SDS user and you created a plan before July 1 but have not completed the next step, we recommend reviewing your plan before submitting forms, consolidating, or changing repayment plans. SDS is continuing to update guidance as the Department of Education, loan servicers, and federal forms move through this transition.

Stay Current with SDS

SDS is actively updating plan guidance, repayment comparisons, and document support to reflect the new July 1 repayment rules.

If you have already created a plan, log back into your SDS account to review your recommendation before taking the next step. If you started an account but have not yet completed your review, now is the time to see how the new repayment options may apply to your loans.

Student loan rules are changing, and SDS is here to help you understand your options, avoid outdated assumptions, and move forward with a plan that reflects today’s federal guidance.