Student Loan Repayment Plans 2026: RAP, IBR & Standard

Student loan rules have changed a lot over the last two years, and many borrowers are confused about which plan they are on, which one they can switch to, and what is going away. If that sounds like you, you are not alone. This guide explains the main federal plans in plain words, as of October 2026, and helps you pick one.

One honest warning first. This is an area where rules and deadlines keep moving, so use this guide to understand the ideas, then confirm your own options and dates at StudentAid.gov or with your loan servicer.

The quick answer

• Federal repayment plans come in two families: fixed payments (the same amount each month) and income-driven plans (the payment depends on how much you earn).
• If you take out a new federal loan, or consolidate your loans, on or after July 1, 2026, you can choose only two plans for your Direct Loans: the Tiered Standard plan or the new Repayment Assistance Plan (RAP).
• If all your loans were made before that date, you can usually pick from the Standard, Graduated and Extended plans, or Income-Based Repayment (IBR), and RAP.
• The SAVE plan has ended. PAYE and ICR are closing, with a final end date of July 1, 2028.
• Private loans are not part of any of this. They have their own rules.

Step zero: find out what you actually owe

Log in at StudentAid.gov and look at your loan list. Note which loans are federal (Direct Loans) and which are private, the balance and rate on each, and your servicer's name. Your plan choices depend on the type of loan and the date it was made. Parent PLUS loans have fewer options. For example, RAP is not available for Parent PLUS loans, and a consolidation loan that includes a Parent PLUS loan cannot be repaid under RAP. Check StudentAid.gov for what applies to you.

Fixed-payment plans

Standard plan

You pay the same amount every month for 10 years. The monthly payment is higher than other plans, but you pay the least interest overall. If you can afford it, this is the cheapest plan.

Tiered Standard plan (new borrowers)

This is the new standard plan for loans made after July 1, 2026. The payment is fixed, and the length is set by how much you borrowed: 10 years for under $25,000, 15 years for $25,000 to under $50,000, 20 years for $50,000 to under $100,000 and 25 years for $100,000 or more. Bigger balances get longer terms, which keeps the payment from being too high. There is no forgiveness at the end, because you pay the loan off in full. This plan does not count toward Public Service Loan Forgiveness.

Graduated and Extended plans

Graduated starts with low payments that rise every two years. Extended spreads a large balance over up to 25 years. Both lower the first payments but cost more interest. They are mainly for people who borrowed before July 1, 2026.

Income-driven plans

Income-driven plans tie your payment to your income and family size. If your income is low, the payment can be very low. The trade-off is that you may pay more interest over a longer time, and in some plans any balance left after 20 to 30 years is forgiven. Forgiven amounts can be taxable income, depending on the year and the rules, so ask a tax preparer.

Repayment Assistance Plan (RAP)

RAP opened on July 1, 2026, and it is designed to be simple. Your monthly payment is a percentage of your adjusted gross income (the income number on your tax return), and the percentage goes up with income:

That yearly amount is divided by 12, and then $50 is subtracted for each dependent you claim. The lowest payment is $10 a month. Two kinds of help are built in: if your payment does not cover the monthly interest, the unpaid interest is waived, and the government adds up to $50 a month toward your principal. After 30 years (360 payments), any remaining balance is forgiven. Months in RAP also count toward Public Service Loan Forgiveness.

Example: a single borrower with an income of $45,000 falls in the 4% band. That is $1,800 a year, or $150 a month. If they had two dependents, it would be $50 a month. A caution: the bands are flat steps, so crossing a $10,000 line can raise your payment noticeably.

Income-Based Repayment (IBR)

IBR is the main older income-driven plan that is staying. The payment is a share of your discretionary income (your income minus an amount based on the poverty line). It is 10% for people who borrowed on or after July 1, 2014, and 15% for earlier loans, and it never goes above what you would pay on the 10-year standard plan. Remaining balances are forgiven after 20 or 25 years. In general, you can choose IBR only if all your Direct Loans were made before July 1, 2026.

PAYE, ICR and SAVE

• SAVE has ended after court rulings. If you were on it, your servicer should have told you to choose a new plan, and you may be placed in one if you do not.
• PAYE and ICR are closing and will end by July 1, 2028. If you are on one, you can stay for now, but plan to move to IBR or RAP before the end.

Fixed vs income-driven: a simple example

Say you owe $40,000 at 6.5%. Here are two ways to pay:

The longer the plan, the lower the payment and the higher the total cost. An income-driven plan works like a flexible version of this: your payment follows your pay. Our student loan calculator lets you try your own balance, rate and extra payments.

How to choose a plan

1. Can you afford the 10-year payment? If yes, it usually saves the most money.
2. Is your income low or unsteady? An income-driven plan (RAP or IBR) protects your budget and your credit, because the payment can fall when your pay falls.
3. Do you work for a government agency or a nonprofit? You may qualify for Public Service Loan Forgiveness (PSLF) after 10 years (120 payments). Choose a plan that counts, and keep your employment certified.
4. Do you have a high balance compared with your income? Forgiveness after 20 to 30 years might matter, but remember that the unpaid interest can add up. Look at the total cost, not only the monthly payment.
5. Not sure? Pick the lowest payment you can afford, and then pay extra when you can. It is easier to pay more than to catch up from a missed payment.

How to pay off student loans faster

• Pay extra and ask for it to go to principal. Extra money on the highest-rate loan saves the most interest.
• Turn on autopay. Federal loan servicers generally give a small rate discount, usually 0.25 percentage points. Ask your servicer.
• Use windfalls. Tax refunds and bonuses are good for a big dent.
• Refinance with care. A private lender may offer a lower rate, but you lose federal protections like income-driven plans, forgiveness and deferment. Only consider it if your income is stable and you do not need those safety nets.
• Avoid scams. Never pay a company to "enroll" you in a plan or to "erase" your loans. Enrolling in federal plans is free.

If you also have credit cards or other high-rate debt, deal with those first. Our snowball vs avalanche guide explains how.

Frequently asked questions

What is the Repayment Assistance Plan?

RAP is a federal income-driven plan that opened in July 2026. Your payment is a set percentage of your adjusted gross income, from 1% to 10%, with a $10 minimum, $50 off per dependent, and forgiveness after 30 years.

Is income-driven repayment worth it?

It can be, if your income is low compared with your debt, or you are going for public service forgiveness. If you can afford the standard 10-year plan, it usually costs less in total.

What student loan repayment plans are going away?

SAVE has ended, and PAYE and ICR are closing, with a final end date of July 1, 2028. New loans after July 1, 2026 can only use the Tiered Standard plan or RAP.

Can I change my student loan repayment plan?

Yes. You can ask your servicer to switch plans, and the request is free. Some changes can cause unpaid interest to be added to your balance, so ask what happens to it first.

Which student loan repayment plans qualify for PSLF?

The 10-year Standard plan and the income-driven plans, including IBR and RAP, count toward Public Service Loan Forgiveness if the rest of the rules are met. The Tiered Standard plan does not count. Check the current list on StudentAid.gov.

How does paying off student loans affect my credit score?

On-time payments help your score over time. Paying a loan off completely can cause a small dip, because an old account closes, but the long-term effect of a clean record is positive.

The bottom line

You have more choices than the servicer's default, and you can change plans. Start by finding out which loans you have, compare the payment and the total cost, and pick the plan that keeps you paying on time. Then check the deadlines on the official repayment plans page, because dates in this area can move.

Sources

• Top FAQs about income-driven repayment plans (IBR payment share, forgiveness terms, PAYE and ICR end date), Federal Student Aid, U.S. Department of Education
• SAVE plan borrowers: FAQs about choosing a different repayment plan, Federal Student Aid, U.S. Department of Education
• Fact sheet: simplifying student loan repayment (Repayment Assistance Plan and Tiered Standard plan), U.S. Department of Education
• The Repayment Assistance Plan (RAP) in P.L. 119-21, the FY2025 reconciliation law (CRS In Focus IF13075), Congressional Research Service
• Compare repayment plans with the repayment calculator, Federal Student Aid, U.S. Department of Education
• Student loans, Consumer Financial Protection Bureau

Rules for federal student loans are changing, so confirm your own plan options and dates at StudentAid.gov or with your servicer. The fixed-payment comparison is calculated by script for a $40,000 balance at 6.5%. Last reviewed October 13, 2026.