Which plans you can use
The 2025 law (P.L. 119-21) split borrowers by the date their loans were made. Find your situation:
| Your loans | Plans you can choose |
|---|---|
| All made before July 1, 2026 | RAP, IBR, the 10-year Standard plan, the graduated plan, and the extended plans with more than $30,000 of Direct Loans |
| At least one Direct Loan made on or after July 1, 2026, including a Direct Consolidation Loan | RAP or the Tiered Standard plan, for all of your loans |
| Already on PAYE or ICR | Stay until June 30, 2028, or move to RAP, IBR or a fixed plan now |
| On SAVE | SAVE has ended. Choose another plan within 90 days of your servicer's notice |
| Parent PLUS loans | Not RAP. See Parent PLUS loans under the 2026 rules |
A Direct Consolidation Loan made on or after July 1, 2026 counts as a new loan. Consolidating now closes IBR and the older fixed plans for all your loans.
Every federal plan at a glance
| Plan | How the payment is set | Forgiveness | Who can use it |
|---|---|---|---|
| RAP | 1% to 10% of your whole AGI, by bracket, ÷ 12, minus $50 per dependent; at least $10 | After 360 payments (30 years) | Everyone with eligible Direct Loans |
| IBR | 10% or 15% of income above 150% of the poverty guideline, ÷ 12; never more than the 10-year standard payment; can be $0 | After 240 or 300 payments (20 or 25 years) | Loans made before July 1, 2026 |
| PAYE | 10% of income above 150% of the poverty guideline, ÷ 12, with the same cap | After 240 payments (20 years) | Borrowers already on it, until June 30, 2028 |
| ICR | The lesser of 20% of income above 100% of the poverty guideline, ÷ 12, and a 12-year fixed payment times an income factor | After 300 payments (25 years) | Borrowers already on it, and consolidations that repaid Parent PLUS loans, until June 30, 2028 |
| 10-year Standard | Fixed payments over 10 years, at least $50 | None: repays the loan | Loans made before July 1, 2026 |
| Graduated | Starts lower and rises, usually every two years, over up to 10 years | None | Loans made before July 1, 2026 |
| Extended | Fixed or graduated over up to 25 years, at least $50 | None | Loans made before July 1, 2026, with more than $30,000 of Direct Loans |
| Tiered Standard | Fixed over 10, 15, 20 or 25 years, set by your balance; at least $50 | None | Anyone with a loan made on or after July 1, 2026 |
| SAVE | Ended by court judgment on March 10, 2026 | – | No one |
Forgiveness after an income-driven plan is federal taxable income from 2026 on. Public Service Loan Forgiveness, after 120 qualifying payments, is not taxed.
The income-driven plans (IDR) in 2026
Income-driven plans set the payment from your income and forgive what's left after enough qualifying payments. Two are open to most borrowers:
- RAP, the Repayment Assistance Plan, opened on July 1, 2026. It charges a percentage of your whole AGI. It waives the interest an on-time payment doesn't cover and matches up to $50 of principal, so the balance falls every month you pay on time. The RAP calculator shows your payment, every step of it.
- IBR, Income-Based Repayment, stays open for loans made before July 1, 2026. It protects 150% of the poverty guideline for your family, can be $0, and forgives sooner, after 20 or 25 years. The interest your payment doesn't cover is still charged. The IBR calculator shows that payment.
PAYE still runs for borrowers already on it, and ICR for borrowers on it and for consolidations that repaid Parent PLUS loans, but both close on July 1, 2028. A borrower who made 60 or more qualifying payments under SAVE on or after July 1, 2024 can't enroll in IBR.
The RAP vs IBR calculator runs both, and the fixed plans, on your numbers.
The fixed plans
Fixed plans repay the loan in full on a schedule and forgive nothing. For older loans there are the 10-year Standard, graduated and extended plans. For anyone with a loan made on or after July 1, 2026 there is the Tiered Standard plan, whose term depends on the balance:
- under $25,000: 10 years;
- $25,000 to $49,999: 15 years;
- $50,000 to $99,999: 20 years;
- $100,000 or more: 25 years.
A fixed plan's payment counts toward Public Service Loan Forgiveness, or toward income-driven forgiveness, only in months when it is at least the 10-year standard amount. On-time Tiered Standard payments always count toward RAP's 360. A fixed plan's term also runs from when your loans entered repayment, not from the day you switch.
Deadlines to know
- SAVE: 90 days from your own servicer's notice. The first notices went out on July 1, 2026, so the first deadlines fell on September 29, and notices go out in waves. Anyone who doesn't choose is moved to a Standard plan. The SAVE plan is ending covers your options.
- PAYE and ICR: choose RAP, IBR or a fixed plan before July 1, 2028. After that date, anyone still on either plan is moved to RAP, or to IBR for loans RAP can't take. Payments under PAYE, ICR and SAVE made before July 1, 2028 count toward RAP's 360.
- Loans made on or after July 1, 2027: the economic hardship and unemployment deferments end, and discretionary forbearance is limited to 9 months in any 24.
How to switch plans
Changing plans is free. You choose an income-driven plan in the income-driven repayment application at StudentAid.gov, signed in with your own FSA ID, or ask your servicer for a paper application. A borrower on an income-driven plan can change at any time to any plan they're eligible for. Leaving IBR for any plan but RAP moves you to the Standard plan first, and after one standard payment you can change again. How to apply for RAP goes through the steps.
Payments made under IBR count toward RAP's 360 if you switch. RAP payments don't count toward IBR forgiveness, except payments at least as large as the 10-year standard amount and qualifying PSLF payments. So the order in which you use the plans can matter.
Common questions
What repayment plans are available in 2026?
It depends on when your loans were made. If they were all made before July 1, 2026, you can choose RAP, IBR, the 10-year Standard plan, the graduated plan or, with more than $30,000 of Direct Loans, the extended plan. If you have any Direct Loan made on or after July 1, 2026, including a consolidation, all your loans go on RAP or the Tiered Standard plan. Borrowers already on PAYE or ICR can stay until June 30, 2028.
What are the income-driven repayment plans now?
RAP and IBR are the two most borrowers can still join. RAP is for everyone with eligible Direct Loans; IBR only for loans made before July 1, 2026. PAYE continues only for borrowers already on it, and ICR for borrowers on it and for consolidations that repaid Parent PLUS loans, until June 30, 2028. SAVE ended by court judgment on March 10, 2026.
What happens if I don't choose a plan?
SAVE borrowers who don't choose within 90 days of their notice are moved to a Standard plan: the 10-year Standard, a consolidation's Standard plan, or Tiered Standard with a loan made on or after July 1, 2026. Borrowers still on PAYE or ICR on July 1, 2028 are moved to RAP, or to IBR for loans RAP can't take.
Can I change repayment plans later?
Yes. A borrower on an income-driven plan can change at any time to any plan they are eligible for. Leaving IBR adds its unpaid interest to your balance, and unless you move to RAP you go onto the Standard plan for one payment before changing again. A fixed plan's term counts from when your loans entered repayment, so a plan whose term has already run out can't be chosen.
Which plan has the lowest payment?
Often an income-driven one. IBR can be $0 at low incomes, and RAP never goes below $10. Among the fixed plans, the extended plans have the lowest payments and cost the most interest. The lowest payment isn't always the lowest total cost, so compare both on your numbers.
Is the SAVE plan still available?
No. A court judgment ended SAVE on March 10, 2026. Borrowers who were on it get a notice from their servicer and have 90 days from that notice to choose another plan. Payments made under SAVE before July 1, 2028 count toward RAP's 360 qualifying payments.