Totals
- Total you pay$100,893
- Interest$50,893
- Counts toward PSLFNo
Longer tiers pay less than the 10-year standard amount, so PSLF doesn't count them. RAP counts.
Tiered Standard plan calculator
The fixed-payment plan for anyone with a federal loan made on or after July 1, 2026: your term, your payment and the total, from your balance and rate.
Tiered Standard payment
$420.41/month
A $50,000 balance falls in the 20-year tier: level payments for 240 months at 8.07%.
The four tiers
- Under $25,00010 years
- $25,000 to $49,99915 years
- $50,000 to $99,99920 years
- $100,000 or more25 years
At least $50 a month. Compare with RAP
What the Tiered Standard plan is
The Tiered Standard plan replaced the old standard, graduated and extended plans for new borrowing. Under 34 CFR 685.208(b)(8) and (c)(1), it applies to anyone who receives a federal Direct Loan on or after July 1, 2026. It covers all of that borrower's Direct Loans, including ones made before July 1, 2026. Those borrowers have two choices: the Tiered Standard plan, with a fixed payment set by the balance, or the Repayment Assistance Plan, with a payment set by income.
You pay the same amount every month for the whole term, so the loan is fully repaid at the end. There is no forgiveness because nothing is left to forgive.
How the term is set
The term depends on the total of your Direct Loans when you enter repayment:
| Total Direct Loans | Term | Example payment at 8.07% |
|---|---|---|
| Under $25,000 | 10 years | $20,000: $243.40 a month, $29,207 in total |
| $25,000 to $49,999 | 15 years | $40,000: $383.88 a month, $69,098 in total |
| $50,000 to $99,999 | 20 years | $75,000: $630.61 a month, $151,341 in total |
| $100,000 or more | 25 years | $120,000: $931.76 a month, $279,519 in total |
8.07% is the fixed rate on graduate unsubsidized loans first disbursed from July 1, 2026 to June 30, 2027. New undergraduate loans are at 6.52% and PLUS loans at 9.07%, so enter your own weighted average.
Longer terms make each payment smaller but add a lot of interest: at $120,000, the 25-year term costs more than twice the balance. Paying extra shortens that; federal loans have no prepayment penalty.
The $50 minimum
Every Tiered Standard payment is at least $50 a month, however small the loan. A $1,000 balance still pays $50 a month and is gone in about two years.
Tiered Standard vs RAP
For most people who will pay the loan in full, the question is whether the income-based payment beats the fixed one.
- RAP's payment is usually lower early in a career. It is a share of income, the interest the payment doesn't cover is waived, and principal is matched up to $50 a month.
- A lower payment means a longer repayment. When RAP's payment is below the tiered payment, you repay more slowly and usually pay more interest in total. With $20,000 at 8.07% and a $45,000 income, RAP starts at $150 a month and costs about $32,351 over 148 months. Tiered Standard costs $29,207 over 120.
- High earners often finish faster on RAP. RAP's payment rises with income and has no cap. At $90,000 of income the same $20,000 loan is paid off in 34 months under RAP, for about $22,523.
- Only RAP forgives. After 360 qualifying payments, anything left on RAP is forgiven. On-time Tiered Standard payments also count toward those 360, so time spent on Tiered Standard isn't wasted if you move to RAP later.
The RAP vs IBR calculator shows Tiered Standard beside RAP when you answer "At least one on or after July 1, 2026" for your loans.
PSLF and the Tiered Standard plan
Public Service Loan Forgiveness counts payments under a plan whose payment is at least the 10-year standard amount. The 10-year tier qualifies by definition; the 15, 20 and 25-year tiers have lower payments and don't. Borrowers working toward PSLF with balances of $25,000 or more should look at RAP, which is a qualifying plan whatever its payment. See RAP and PSLF.
If you only have older loans
If all your loans were made before July 1, 2026 and you have not borrowed since, you keep the older fixed plans instead: the 10-year Standard plan, and graduated and extended options. You can also still choose IBR or RAP. Taking out a new loan on or after July 1, 2026 moves you to the new rules for all your loans, so check the 2026 loan limits and plans before borrowing again.
Common questions
Who is on the Tiered Standard plan?
It is the fixed-payment plan for borrowers who receive a Direct Loan on or after July 1, 2026. Those borrowers can choose between the Tiered Standard plan and RAP, for all of their Direct Loans, including older ones.
How long is the Tiered Standard repayment term?
It depends on your total Direct Loans when you enter repayment: under $25,000 is 10 years, $25,000 to under $50,000 is 15 years, $50,000 to under $100,000 is 20 years, and $100,000 or more is 25 years.
Is there a minimum payment?
Yes. Payments are at least $50 a month, except that when the balance is under $50 the last payment is simply what is left.
Does the Tiered Standard plan count toward PSLF?
Only if the payment is at least what the 10-year standard plan would require, which in practice means the 10-year tier for balances under $25,000. Longer tiers have lower payments that PSLF does not count; RAP does count.
Do Tiered Standard payments count toward RAP forgiveness?
Yes. On-time Tiered Standard payments are qualifying payments toward RAP's 360, so switching from Tiered Standard to RAP later keeps that progress.