Federal student loans come with a menu of repayment plans, and the menu changed on July 1, 2026. Which plans you can use now depends on when your loans were made. Choosing well can save you thousands of dollars, or, if you work in public service, much more.
Which Plans Can You Use?
| Your loans | Available plans |
|---|---|
| All made before July 1, 2026 | Standard (10-year), graduated, extended, RAP, IBR, and until July 1, 2028, PAYE and ICR |
| Any loan made on or after July 1, 2026 (including a new consolidation loan) | New standard plan (10–25 years by balance) or RAP, for all your Direct Loans |
| Parent PLUS made on or after July 1, 2026 | New standard plan only |
If you do not pick a plan, a new borrower is placed on the new standard plan.
All Federal Student Loan Repayment Plans at a Glance
| Plan | Monthly Payment | Term | Forgiveness | Status |
|---|---|---|---|---|
| New standard | Fixed | 10, 15, 20 or 25 years by balance | None | For loans made from July 1, 2026 |
| Standard (10-year) | Fixed | 10 years | None | Older loans |
| Graduated | Starts low, rises every two years | 10 years | None | Older loans |
| Extended | Fixed or graduated | Up to 25 years (balance over $30,000) | None | Older loans |
| RAP | 1%–10% of AGI, minus $50/month per dependent | Up to 30 years | After 360 qualifying payments | Open to all except Parent PLUS |
| IBR | 10% or 15% of income above 150% of poverty line | 20 or 25 years | Yes | Older loans |
| PAYE | 10% of income above 150% of poverty line | 20 years | Yes | Until July 1, 2028 |
| ICR | 20% of income above the poverty line | 25 years | Yes | Until July 1, 2028 |
| SAVE | — | — | — | Ended |
For how the income-driven plans compare at different incomes, see income-driven repayment plans.
The New Standard Plan (Loans From July 2026)
The 2025 law replaced the 10-year default with a tiered standard plan. The term is set by your total federal balance when you enter repayment:
| Total balance | Repayment term |
|---|---|
| Under $25,000 | 10 years |
| $25,000–$49,999 | 15 years |
| $50,000–$99,999 | 20 years |
| $100,000 or more | 25 years |
You can always pay more than the required amount without penalty, so you can still finish in 10 years on a plan that allows 15 or 20.
Standard 10-Year Plan (Older Loans)
| Feature | Details |
|---|---|
| Monthly payment | Fixed |
| Term | 10 years |
| Interest paid | Least of any plan |
| PSLF eligible | Yes, but nothing is left to forgive after 120 payments |
Example: $37,850 at 6.52%
| Plan | Monthly Payment | Total Paid | Total Interest |
|---|---|---|---|
| Standard, 10 years | $430 | $51,620 | $13,770 |
| New standard, 15 years (balance $25,000–$49,999) | $330 | $59,423 | $21,573 |
| Extended, 25 years (older loans) | $256 | $76,812 | $38,962 |
Stretching the same balance from 10 to 25 years cuts the payment by about $175 a month but nearly triples the interest.
Graduated and Extended Plans (Older Loans)
- Graduated: payments start lower (never below the monthly interest, about $206 on $37,850 at 6.52%) and rise every two years, finishing in 10 years. You pay more interest than on the standard plan.
- Extended: available if you have more than $30,000 in Direct Loans; fixed or graduated payments over up to 25 years.
Neither plan qualifies for PSLF, and neither is available for loans made on or after July 1, 2026.
Income-Driven Plans in Brief
| Plan | $50,000 income, single, no dependents |
|---|---|
| RAP | 4% of income = $167/month |
| IBR (post-2014 borrowers) | 10% × ($50,000 − $23,940) = $217/month |
RAP forgives after 360 qualifying payments; IBR after 20 or 25 years. On RAP, any interest your payment doesn’t cover is waived and principal falls by at least $50 a month when you pay on time. Forgiveness at the end of any income-driven plan is taxable from 2026. Full details: income-driven repayment plans.
Public Service Loan Forgiveness (PSLF)
PSLF forgives your remaining balance, tax-free, after 120 qualifying monthly payments while working full-time for a government or nonprofit employer. Payments under RAP, IBR, PAYE, ICR or a 10-year standard plan count; graduated and extended plans do not. Because a 10-year standard plan leaves nothing to forgive, public service workers usually choose the income-driven plan with the lowest payment. See how to apply for PSLF.
Decision Framework
Choose a standard plan if:
- You can comfortably afford the payment
- You want to pay the least interest
- You don’t expect to qualify for PSLF
Choose RAP or IBR if:
- Your balance is high relative to your income
- You work in public service and are pursuing PSLF
- Your income is irregular or you have dependents (RAP lowers the payment by $50 a month per dependent)
Be cautious with extended or long standard terms if:
- You could afford a shorter term: the extra interest is large
Think twice before consolidating if:
- Your loans all predate July 2026: a Direct Consolidation Loan made on or after July 1, 2026 can only be repaid on the new standard plan or RAP
Refinancing vs. Federal Repayment Plans
| Factor | Federal Plans | Private Refinancing |
|---|---|---|
| Interest rates | Fixed; set each year by formula | Fixed or variable, based on credit |
| Income-driven options | Yes | No |
| Forgiveness | PSLF, income-driven | No |
| Deferment/forbearance | Yes | Limited |
| Death and disability discharge | Yes | Varies by lender |
Don’t refinance federal loans privately if you’re pursuing PSLF, may need income-driven payments, or might need deferment. Consider refinancing private loans, or federal loans if you have high income, excellent credit and no need for federal protections. See how to refinance student loans.
Related: Student Loan Changes in 2026 | Average Student Loan Debt by State | Debt Payoff Strategies
Part of the student loan guide.
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