Oregon Sens. Jeff Merkley and Ron Wyden are warning that federal student-loan repayment options are being narrowed in ways that could raise monthly payments for some borrowers and create new administrative hurdles—an issue that doesn’t stop at the Columbia River.

For Cowlitz County residents attending or recently graduating from Lower Columbia College (LCC) or other regional programs, the changes matter because many borrowers rely on income-driven repayment plans to keep payments affordable, stay out of default, and maintain eligibility for Public Service Loan Forgiveness (PSLF) while working in schools, healthcare, nonprofits, and public agencies.

The alarm from Oregon’s senators comes amid a broader federal overhaul of repayment rules that—per federal summaries and Department of Education announcements—reduces and phases out multiple legacy income-driven plans, while introducing a new income-based option beginning in mid-2026.

What’s changing—and when
The federal timeline is complicated, but there are a few dates borrowers in southwest Washington should put on their calendar:

  • July 1, 2026: For new federal student loans disbursed on or after this date, the federal government is set to terminate existing repayment-plan options and limit borrowers to two choices: a revised Standard plan or a new income-driven plan called the Repayment Assistance Plan (RAP). (Congress.gov summary: https://www.congress.gov/bill/119th-congress/house-bill/1/summary/49)
  • July 1, 2026: The U.S. Department of Education has separately said the new repayment reforms will be available beginning July 1, 2026, while the Department delays certain involuntary collections actions as it implements the changes. (U.S. Department of Education press release, Jan. 16, 2026: https://www.ed.gov/about/news/press-release/us-department-of-education-delays-involuntary-collections-amid-ongoing-student-loan-repayment-improvements)
  • July 1, 2028: Current borrowers who are in certain income-driven plans—commonly described as SAVE, PAYE, and ICR—face a statutory transition deadline to move to another plan. Federal summaries indicate that if borrowers do not select a plan by that date, the Department of Education will place them into one of the remaining options. (Congress.gov summary: https://www.congress.gov/bill/119th-congress/house-bill/1/summary/49)

Why this matters in Cowlitz County
Student debt is not abstract here: LCC is a major entry point for local nursing, healthcare support, technical trades, and transfer students. For many, federal repayment plans determine whether student debt is a manageable monthly bill—or an escalating crisis.

Income-driven plans can be the difference between staying current and falling into delinquency or default, especially for borrowers working lower-wage jobs or juggling seasonal work. A narrower menu of plans, or a rushed transition, increases the risk of missed paperwork, payment spikes, and loan-servicer errors—problems that disproportionately hit working-class borrowers and first-generation students.

Collections, defaults, and a system under strain
The Department of Education said it is delaying the start of certain involuntary collections tools—like administrative wage garnishment and Treasury offsets—while it implements repayment changes. But the underlying message remains: borrowers are expected to resume repayment, and the federal government is preparing to enforce it. (U.S. Department of Education press release, Jan. 16, 2026: https://www.ed.gov/about/news/press-release/us-department-of-education-delays-involuntary-collections-amid-ongoing-student-loan-repayment-improvements)

National reporting has also highlighted concerns from Democratic lawmakers that changes to the SAVE plan and related income-driven options could disrupt affordability and forgiveness pathways for millions, including public servants. (Business Insider, Jan. 2026: https://www.businessinsider.com/student-loan-forgiveness-pslf-at-risk-without-save-repayment-plan-2026-1)

What local borrowers can do now

  • Write down your current repayment plan name (SAVE, PAYE, ICR, IBR, Standard, etc.) and your next recertification date. This matters because the phase-out and transition rules vary by plan and by whether you take out new loans after July 1, 2026.
  • Don’t assume “no news” means no change. Even when deadlines are years away, servicers may push plan transitions earlier depending on implementation guidance and litigation.
  • If you’re pursuing PSLF, track qualifying payments carefully and keep copies of Employment Certification Forms and confirmation notices.

Bottom line
The emerging student-loan overhaul is not just a D.C. fight—it’s a kitchen-table issue for Cowlitz County. Whether you’re a recent LCC graduate, a parent borrower, or a public-sector worker chasing PSLF, the next two years (July 1, 2026 to July 1, 2028) could determine what repayment options you’re allowed to use and how much you’re required to pay.

Sources

  • Congress.gov bill summary (repayment-plan changes and dates): https://www.congress.gov/bill/119th-congress/house-bill/1/summary/49
  • U.S. Department of Education press release (Jan. 16, 2026): https://www.ed.gov/about/news/press-release/us-department-of-education-delays-involuntary-collections-amid-ongoing-student-loan-repayment-improvements
  • Business Insider reporting on lawmakers’ concerns (Jan. 2026): https://www.businessinsider.com/student-loan-forgiveness-pslf-at-risk-without-save-repayment-plan-2026-1