🎓 Repayment Plans
Federal Student Loan Repayment Plans in 2026: RAP, Tiered Standard and IBR
Short answer: Federal repayment changed on July 1, 2026. A new income-driven plan called the Repayment Assistance Plan (RAP) launched, and the SAVE plan has ended. Which plans you can use depends mainly on whether you received a new federal loan on or after July 1, 2026. Check your own options at StudentAid.gov.
What changed in 2026
- RAP launched. The Repayment Assistance Plan is a new income-driven plan available starting July 1, 2026. Borrowers can apply online through StudentAid.gov/idr.
- SAVE ended. A court order ended the SAVE plan on March 10, 2026. Former SAVE borrowers were told to choose another plan within a set window. See the Department's court actions page.
- New-loan limits. If you receive a new federal loan, including a consolidation loan, on or after July 1, 2026, your repayment choices for your Direct Loans are generally limited to RAP and a new Tiered Standard plan.
- Phase-out. The Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans are scheduled to end on July 1, 2028.
The plans at a glance
| Plan | How payment works | Who it is for | Status (Oct 2026) |
|---|---|---|---|
| RAP | Based on income (adjusted gross income) and household details | Direct Loan borrowers; the only income-driven plan for new loans after July 1, 2026 | Available since July 1, 2026 |
| Tiered Standard | Fixed payments over a term that depends on balance | Borrowers who want predictable payments | Available |
| IBR | Income-based, with a cap tied to the standard plan | Eligible borrowers with older loans | Remains available |
| ICR / PAYE | Income-driven | Existing borrowers only | Scheduled to end July 1, 2028 |
| SAVE | - | - | Ended by court order |
Exact formulas, caps and eligibility rules change. Use the official Loan Simulator to see your own numbers.
How RAP works
Your RAP payment is a percentage of your annual income, divided by 12, and the percentage depends on your income level. RAP offers cancellation of any remaining balance only after 30 years of qualifying payments, which is longer than some older plans. Experts have noted that RAP can raise payments for some borrowers and lower them for others, so compare before switching.
Hypothetical example: Two borrowers with the same balance but different incomes and household sizes will have different RAP payments. That is why a personal estimate matters more than any general rule.
How to choose a plan
- Log in to StudentAid.gov and confirm your loan types. FFEL, Perkins and other older loans can have different rules.
- Run each available plan in the Loan Simulator.
- Compare monthly payment, total paid, and the forgiveness timeline.
- If you work in public service, check whether a plan also counts toward PSLF.
- Apply for free on StudentAid.gov or through your servicer.
If the lowest payment is still too much, see how to lower student loan payments. For a broader starting point, read our repayment assistance guide.
Mistakes to avoid
- Staying on an ended plan and ignoring servicer notices.
- Switching plans without checking the effect on interest and forgiveness timeline.
- Consolidating without understanding what happens to qualifying payment counts.
- Paying a third party for a free application. See scam warning signs.
Rules change. This guide was reviewed on October 21, 2026 against official sources. Federal student-loan programs, deadlines and court-driven changes can shift quickly, so confirm current details at StudentAid.gov before you act.
Frequently asked questions
Official sources and references
Related guides
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