When Democrats won control of both the US House of Representatives and the Senate on November 3, 2026, I started thinking about what this could mean for student loan borrowers. It’s no surprise that my inbox quickly filled up with questions.
Does this mean SAVE is coming back? Could Grad PLUS loans be reinstated? Is PSLF going to become more generous? And what about the thousands of borrowers waiting for their PSLF Buyback applications to be processed? We have all of the questions, and unfortunately, the answers aren’t always straightforward.
The short answer is that I wouldn’t expect much to change immediately.
President Trump still controls the White House, and he has the power to veto legislation. The new Congress won’t take office until January 2027, and Democrats won’t have enough votes to override a presidential veto. However, this election does change the political landscape. Democrats will control the congressional agenda and will have more opportunities to influence how existing student loan programs are administered.
Below, I’ll discuss what WCIers need to be aware of for their student loan plans.
What Has Already Changed: The One Big Beautiful Bill Act
Before looking forward, let’s review what has already happened.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made some of the biggest changes to federal student loans we’ve seen in decades. Many of the most significant provisions took effect July 1, 2026.
Here are the changes that matter most for doctors and dentists.
#1 Grad PLUS Loans Are Gone for New Borrowers
New graduate and professional students generally can no longer borrow through the Grad PLUS program. These loans allowed students to borrow up to the full cost of attendance for their graduate or professional degree programs. Students who were already enrolled and borrowing before July 1, 2026, can typically borrow Grad PLUS loans up to three years.
#2 Federal Borrowing Limits Are Significantly Lower
Professional students are now limited to $50,000 annually and $200,000 in aggregate federal student loans. Graduate students have lower limits of $20,500 annually and $100,000 in aggregate. There is also a $257,500 lifetime federal borrowing limit.
This is a huge deal for medical and dental students. Many schools have a cost of attendance that exceeds the new federal borrowing limits, meaning students will need to find alternative ways to finance their education.
I expect private student loans to become much more common for medical and dental students over the next several years. Schools may lower tuition or offer creative ways to finance your education as well. I expect that fewer federal options will mean less forgiveness and more to be paid back over time.
#3 The Repayment Landscape Is Changing, and You Have Fewer Options
The new Repayment Assistance Plan (RAP) is replacing much of the previous income driven repayment (IDR) system. SAVE is already gone, and PAYE and ICR will be phased out by July 1, 2028. IBR will remain an option, but only if you haven’t taken out any new federal loans on or after July 1, 2026.
If you take out any new federal loans on or after July 1, 2026—even a small one or a consolidation loan—RAP becomes your only IDR option. It’s more important than ever to understand the implications before you borrow additional federal loans, consolidate, or choose a repayment strategy.
#4 Parent PLUS Loans Limited
Parent PLUS loans were adjacent to the Grad PLUS program, and they allowed parents to borrow on behalf of their child in undergrad. Parent PLUS loans had no set annual or aggregate cap; instead, parents could borrow up to the full cost of attendance minus any financial aid received by the student for the academic year. Now, borrowing is limited to $20,000 per year per student and $65,000 total per student. In addition, they have less generous repayment options since those taking out loans after June 30, 2026, are not eligible for income driven repayment programs. This means no PSLF or IDR forgiveness for those currently borrowing. Those who borrowed prior to July 1, 2026, are eligible for IDR and their forgiveness programs.
The bottom line is that these changes are already law. Democrats would need to pass new legislation to reverse them, and that legislation would still need President Trump’s signature. It’s unlikely for big changes to occur until after the 2028 presidential election.
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What Do Democrats Want to Change?
Several student loan proposals received little attention under Republican congressional control. Now that Democrats will control both chambers, some of these bills could finally receive hearings or advance through the legislative process.
A few proposals worth watching include:
- Student Loan Interest Elimination Act: This legislation would eliminate interest on federal student loans and establish an Education Affordability Trust Fund. I have a hard time seeing this one gaining enough bipartisan support to move forward.
- Lowering Student Loans Act: This proposal would cap interest rates on certain federal student loans at 2%, including existing loans with higher rates. Interestingly, even Trump has demonstrated interest in the idea. Of these proposals, I think this one has a more realistic chance of gaining bipartisan support.
- PSLF Inclusion Act: This bill would expand the types of repayment and administrative forbearance periods that count toward the first 60 qualifying PSLF payments. This one is worth watching. Many physicians spend their first few years after graduation navigating residency, changing jobs, and getting established financially. Making it easier to receive PSLF credit during that transition could be particularly helpful.
- SIMPLE Act: This proposal focuses on helping delinquent borrowers by improving communication and automatically enrolling eligible borrowers into affordable income driven repayment plans. I actually like this proposal. Automatically placing borrowers into an affordable repayment plan seems like a much better approach than putting them into the standard repayment plan when they may not be able to afford it.
Some of these proposals have bipartisan support, which makes them more interesting than broader student loan forgiveness legislation. Could we see a lower interest rate on federal student loans? Possibly. This is one area where some common ground could exist between Democrats and Republicans. However, I’d keep expectations low right now. Democrats can introduce bills, hold hearings, and pass legislation through Congress, but getting Trump to sign many of these proposals is an entirely different challenge.
Minor technical fixes and smaller bipartisan reforms are much more realistic than sweeping changes to the federal student loan system.
What Actually Changes in January?
The biggest near-term impact of the election may have less to do with new legislation and more to do with congressional oversight. Here are three areas I’d keep an eye on once the new Congress is sworn in.
#1 More Scrutiny of the Department of Education
Expect hearings and investigations into how the Department of Education is administering federal student loan programs.
There have been significant concerns about staffing reductions (cut in half since Trump was inaugurated), loan servicing problems, processing delays, and the Department’s handling of PSLF and income driven repayment applications. A Democratic Congress may have more opportunities to demand answers and hold the Department accountable.
#2 Federal Funding and Staffing
Congress controls federal appropriations. This gives the new majority an opportunity to influence the resources available for administering federal student aid programs.
The Department of Education has undergone substantial organizational changes, including the possibility of shuttering. There are legitimate questions about whether it has the staffing and infrastructure necessary to administer complex programs like PSLF.
#3 Bipartisan Student Loan Reforms
The Trump administration might have opportunities to work on narrower reforms. Potential areas of agreement include interest rate changes, bankruptcy treatment of student loans, improved borrower communication, and technical corrections to the new borrowing limits.
I wouldn’t expect broad-based student loan forgiveness, but some targeted reforms could have a chance.
More information here:- Helping a Pre-Med Run the Numbers on Medical School
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PSLF Buyback: Could Relief Finally Be Coming?
Of everything happening in the student loan world right now, this is probably the development I’m watching most closely. I’ve worked with hundreds of borrowers dealing with PSLF Buyback delays, and it’s incredibly frustrating to see people who have done everything right still waiting months (and sometimes years) for their forgiveness to be processed.
While much of the election coverage has focused on what Democrats might accomplish through legislation, a separate legal battle is playing out that could have a more immediate impact on borrowers pursuing Public Service Loan Forgiveness.
On October 30, 2026, the American Federation of Teachers (AFT) filed a new class-action lawsuit, Weingarten v. McMahon, against the Department of Education.
The lawsuit alleges that the Department has improperly delayed PSLF Buyback applications, removed previously earned qualifying payment credits, and failed to properly count some borrowers’ recent qualifying payments.
The Buyback backlog has become particularly concerning. According to figures cited in the lawsuit, pending Buyback applications increased from approximately 49,000 in April 2025 to nearly 90,000 by March 2026. Approximately 88,000 applications remained pending in April 2026.
At the Department’s historical processing rate, the lawsuit estimates that it would take more than 18 months to clear that backlog, even if no new applications arrived. I’ve seen many clients wait 18-24 months for their applications to be processed.
How Does PSLF Buyback Work?
For those unfamiliar with the program, PSLF Buyback allows certain borrowers to purchase eligible months spent in deferment or forbearance that otherwise would not count toward the 120 qualifying payments required for forgiveness. The most common eligible months come from SAVE forbearance, which most SAVE borrowers were in from summer 2024 until they moved to a new plan in 2026.
For example, imagine a physician who has worked at a qualifying nonprofit hospital for 10 years. They have 112 qualifying payments and eight eligible months of forbearance.
Rather than make eight additional monthly payments, they could possibly buy back those months and satisfy the 120-payment requirement. And often it could be paid at a lower rate than what they would pay currently.
There are specific eligibility requirements, and not every month of forbearance qualifies. But for borrowers who meet the requirements, Buyback may be an incredibly valuable tool.
The problem is that the Department has to process the application, and wait times are forever. Rather than wait indefinitely, many of my clients keep making qualifying payments so a stalled application doesn’t delay hundreds of thousands in forgiveness. The current AFT lawsuit and Democratic takeover could pressure the Department to process Buyback applications faster and rectify borrower repayment histories. However, be careful about making financial decisions based on the assumption that the lawsuit will succeed or that applications will suddenly be processed.
Another PSLF Development: Employer Eligibility Restrictions Abandoned
The Buyback lawsuit isn’t the only recent development worth watching.
In 2025, the Department of Education attempted to change PSLF employer eligibility rules. The new rule would have allowed the Department to disqualify certain employers based on a determination that their activities had a “substantial illegal purpose.” That included conduct like aiding immigration law violations, supporting terrorism, patterns of illegal discrimination or state law violations, and certain care for transgender youth.
This raised significant concerns for employees of nonprofit organizations, hospitals, and other public service employers. I had many docs from large academic institutions calling in, worried they would lose eligibility for PSLF.
A coalition of states challenged the rule in court, and a federal judge ultimately vacated it. The Trump administration initially appealed that decision but dropped its appeal in October 2026. As a result, the challenged rule is no longer in effect.
More information here:My Predictions Through 2028
So, what do I actually think will happen?
Here are my predictions, not policy.
- Increased congressional oversight of PSLF –> Very likely
- More pressure to process PSLF Buyback applications –> Very likely
- Restoration of improperly removed PSLF credits –> Possible
- Lower federal student loan interest rates –> Possible
- Restoration of Grad PLUS loans –> Unlikely
- Repeal of OBBBA repayment changes –> Very unlikely
The biggest opportunity for borrowers may be improvements to existing programs rather than the creation of entirely new forgiveness and IDR programs.
The other important date to keep in mind is 2028. Whoever wins the next presidential election will inherit a substantially different federal student loan system than the one that existed just a few years ago. By then, we’ll have a much better understanding of whether the overhaul of federal student aid is sustainable.
What Should Doctors and Dentists Do Now?
If there’s one thing I’ve learned from advising thousands of borrowers at StudentLoanAdvice.com, it’s that waiting on Washington to fix your student loans is rarely a good plan.
Here’s what I’d recommend now.
#1 If You’re Pursuing PSLF, Stay the Course
Continue certifying your qualifying employment and making qualifying payments. The election doesn’t change the 120-payment requirement. If you’ve reached 120 months of qualifying employment, review your payment history carefully. If you’re eligible for Buyback, consider submitting an application.
If you’ve already submitted a Buyback application, monitor its status, maintain full-time employment at a nonprofit, and consider remaining in repayment to not postpone your forgiveness.
#2 If You’re Still on an Older Repayment Plan, Understand Your New Options
SAVE, PAYE, and ICR are being phased out. Borrowers on IDR plans will need to decide between RAP and IBR (if they are eligible). Don’t assume you will be auto-enrolled in the repayment plan most appropriate for your situation.
#3 Be Careful About Refinancing Federal Loans
If you’re pursuing PSLF or another federal forgiveness program, refinancing into private loans permanently eliminates your federal forgiveness options.
If you’re not pursuing forgiveness, refinancing may still make sense. Just make sure you evaluate the interest savings against the federal protections you’re giving up.
#4 Current Medical and Dental Students Need to Rethink Their Borrowing Strategy
The elimination of Grad PLUS and the new federal borrowing limits will create funding gaps for many professional students. Private student loans are likely to become a much bigger part of medical and dental school financing. Don’t count on Congress restoring Grad PLUS. Understand your funding needs, compare private loan options, and consider the long-term implications before borrowing.
The Bottom Line
The Democratic takeover of Congress changes the political landscape, but it doesn’t immediately change the student loan rules.
I expect more oversight and potentially some bipartisan improvements to existing programs. I don’t expect a repeal of OBBBA, the restoration of Grad PLUS, or broad-based student loan cancellation during the next two years.
The new Buyback lawsuit and the administration’s abandonment of its appeal over PSLF employer eligibility restrictions—along with increased congressional oversight—could make the next two years particularly important for public service borrowers.
If you’ve spent 10 years working toward PSLF and are waiting for the Department to process your Buyback application, you have every reason to want answers. But don’t build your student loan plan around what might happen in Washington.
Understand the rules as they exist today and stay on top of changes. At StudentLoanAdvice.com, we’ll help you navigate the minutiae and play the game well, so you can make better repayment and borrowing decisions.
What do you think? Will the new Democratic Congress make a meaningful difference for student loan borrowers? And if you’re waiting on a PSLF Buyback application, do you think the new lawsuit will finally get things moving? If so, why?
White Coat Planning is a Division of Extraordinary Trust, LLC.
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