What Just Happened and What to Do Next

From the expansion of student loan repayment plans to a tax break for homeowners, here is some news that could impact your wallet this week, and how you can prepare your finances for the week ahead.

Next week, the Federal Reserve, the central bank that influences interest rates, is meeting to decide if it will cut rates for the first time this year. The Fed is expected to keep rates where they are this month to stifle inflation that is being pushed up by tariffs, but now may be the time to take advantage of high-yield savings accounts before rates drop.

For about 7.7 million student loan borrowers who have been in an interest-free forbearance for a year under the Saving for a Valuable Education repayment plan, their balances will resume accruing interest at the end of next week.

Department of Education Enacts Changes From The ‘One Big, Beautiful Bill’

Now that that “One, Big, Beautiful Bill” has been signed, millions of existing student loan borrowers will be required to change their repayment plan over the next three years.

The Department of Education is making room for borrowers to accommodate those moves.

The department announced that payments under the “Repayment Assistance Plan,” which will be open starting July 1, 2026, will qualify for loan forgiveness under the Public Service Loan Forgiveness program.

It has also expanded the Income-Based Repayment plan, the only existing income-driven repayment plan that survived the “One, Big, Beautiful Bill.” While it won’t be available to new borrowers, the changes make it easier for existing borrowers on one of the repayment plans ending in 2028 to move to this option.

What To Do Next

Borrowers on the Saving for a Valuable Education, Income-Contingent Repayment, and Paying As You Earn plans must switch to another plan by July 1, 2028. Depending on their student loan type, borrowers can choose whether to move to the RAP or IBR for an income-driven option.

Student loan borrowers can sign into their accounts on the Department of Education’s loan servicer page to see which repayment plan they are on, and can log into StudentAid.gov to see what loan type they have. This information will help them determine whether they have to move and which options they are eligible for.

Proposed Tax Break Could Improve The Housing Market

This week, Trump proposed eliminating the capital gains tax on all profits received from home sales, making it easier for many homeowners to sell.

The elimination of this tax would mean homeowners who sell their primary residence would not have to pay taxes on any of the profits they earn. If this makes more homeowners list their homes, it could jumpstart the housing market and lower sale prices for potential homebuyers.

What To Do Next

This tax break is still just a proposal, and even if implemented, it is uncertain if it will fix all the housing market’s woes.

Still, this tax break would relieve the tax burden for millions of homeowners considering selling their houses. Trump would need Congressional approval to make these changes, but a House representative already introduced a proposal to eliminate the capital gains tax.

“Increasing the exclusion or eliminating the capital gains tax for home sellers could enable those who would otherwise face a steep tax bill to sell and downsize or relocate, potentially opening up housing inventory in some of the highest-cost housing markets,” wrote Danielle Hale, Chief Economist for Realtor.com.