AACC Forces Loan Plan Switch, Sets 2028 Deadline | The Locally Times
Anne Arundel Community College requires current student loan borrowers on income-driven plans to select new repayment options by July 1, 2028, or face automatic reassignment.
Thousands of Anne Arundel Community College (AACC) student loan borrowers face a critical deadline: switch their income-driven repayment plan by July 1, 2028, or be automatically enrolled in a new, potentially impactful, default option. AACC's policy change, documented in recent meeting records, mandates that current borrowers on Income-contingent (ICR), Pay as You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans must transition to a different repayment plan. Failure to act by the deadline will result in automatic enrollment into the Revised Pay As You Earn (RAP) plan, a move that could significantly alter monthly payments and long-term financial planning for affected students. ## Mandatory Repayment Plan Transition AACC's policy specifically targets current borrowers utilizing Income-contingent (ICR), Pay as You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans. These students, already repaying federal loans under these programs, are required to select an alternative by the July 1, 2028, deadline. AACC records list available transition options as Income-Based Repayment (IBR) plans, standard repayment plans, or the RAP plan. Crucially, inaction by the deadline means automatic enrollment into the RAP plan, removing the borrower's choice. While the college's records do not specify the exact number of students affected, this mandate represents a significant shift in how thousands of AACC borrowers will manage their educational debt. ## Loan Proration for New Borrowers Beyond the current borrower mandate, AACC has also introduced a new loan proration policy for incoming students. AACC meeting records confirm that loan proration will apply to new borrowers whose loans originate on or after July 1, 2026. This policy typically adjusts the maximum loan amount a student can receive, often based on their enrollment period, particularly for those graduating mid-academic year. Consequently, students starting their borrowing at AACC from mid-2026 onward may encounter different loan disbursement calculations than prior cohorts. The records, however, do not detail the specific methodology for this proration or its potential impact on average loan amounts for new students. ## Unanswered Questions and Potential Implications While AACC's records confirm the mandatory transition and default to the RAP plan, they offer no specific details about the RAP plan itself. Key information regarding its terms, payment calculation methods, or how it compares to the current ICR, PAYE, or SAVE plans is absent from the provided documentation. This critical lack of detail leaves borrowers facing this mandatory transition without comprehensive information on the implications of their choices or the default RAP plan. Furthermore, AACC's records do not outline the process for borrowers to make their selection, where to find information about alternative plans, or what resources the college will provide to assist students in understanding these significant changes. Without this crucial information, students may struggle to make informed decisions about their repayment future, potentially leading to unintended financial consequences. ## Broader State Financial Relief Efforts Separately from AACC's student loan policy changes, the state of Maryland continues to provide financial relief through other programs. The Maryland Department of Labor reactivated its Federal Shutdown Loan Program in February 2026, offering no-interest loans to federal workers affected by government shutdowns. Governor Wes Moore authorized a second payment for this program, which provides $700 no-interest loans to Maryland residents who are federal employees working without pay during a shutdown. Since its February 2026 reactivation, the program has disbursed $35,000 in no-interest federal shutdown loans. The program, initially launched in October 2025, previously issued 3,483 loans totaling $2,438,100 to over 2,000 excepted federal employees during a shutdown from October to November 2025. This state-level initiative addresses a distinct financial need for federal workers, operating independently of AACC's student loan repayment adjustments. ## Key Questions **Who is affected by the AACC loan plan change?** Current Anne Arundel Community College borrowers enrolled in Income-contingent (ICR), Pay as You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans must transition to a different repayment plan. **What happens if I do not choose a new plan by the deadline?** If no selection is made by July 1, 2028, current borrowers will be automatically moved into the Revised Pay As You Earn (RAP) plan. **When does loan proration begin for new AACC borrowers?** Loan proration will apply to new borrowers at Anne Arundel Community College on or after July 1, 2026.