What changed for federal student loans in 2026
A 2025 federal law (Public Law 119-21) and a Department of Education final rule that took effect on July 1, 2026 changed how federal Direct Loans are repaid. The new Repayment Assistance Plan (RAP) is open to most borrowers. Loans first disbursed on or after July 1, 2026 can only use RAP or the new Tiered Standard plan. Older loans can generally still use Income-Based Repayment (IBR) and the 10-year Standard plan. This calculator compares them side by side from your balance, rate and income.
The plans in plain English
- RAP: a share of your adjusted gross income (AGI), from a flat $10 a month at low incomes up to 10% of your whole AGI once it is above $100,000. Each dependent takes $50 a month off, and the minimum is $10. If your payment does not cover the month's interest, the rest of the interest is waived. And if your payment reduces your principal by less than $50 (or by less than your payment, if the payment is under $50), the government adds the difference toward your principal. What is left after 360 payments is forgiven.
- IBR: 15% of income above 150% of the poverty guideline for older borrowers (forgiveness after 25 years), or 10% for newer borrowers with no federal loan balance on July 1, 2014 (20 years). It never exceeds the 10-year Standard payment.
- 10-year Standard: a fixed payment that clears the loan in 10 years.
- Tiered Standard: a fixed payment whose term depends on your balance: 10 years under $25,000, 15 years to under $50,000, 20 years to under $100,000 and 25 years at $100,000 or more. The minimum is $50 a month.
How RAP is figured
RAP uses a percentage of your whole AGI, set by its $10,000 band: $120 a year at $10,000 or less, then 1% from $10,001 to $20,000, 2% to $30,000, and one more point per band up to 9% at $90,001 to $100,000, and 10% above that. The yearly amount is divided by 12 and reduced by $50 per dependent, with a $10 floor. With an AGI of $55,000 and no dependents, the band is 5%, or $2,750 a year, about $229 a month. An older IBR borrower living alone with the same income pays 15% of ($55,000 minus $23,940, which is 150% of the 2026 guideline of $15,960), about $388 a month, unless the 10-year Standard payment is lower.
What the estimate assumes
The page works out each payment from the official rules, then steps through the loan month by month. It assumes your income and family size stay the same, all your loans are Direct Loans at one average rate, and you never miss a payment. Under IBR it does not add unpaid interest to your balance. Real loans differ, so use the result to compare plans, not as the number your servicer will bill.
The lowest monthly payment is not always the cheapest plan. Small payments can run 20 to 30 years. Forgiven balances may also count as taxable income federally starting in 2026, so check IRS guidance or ask a tax professional before counting on forgiveness.
SAVE, the 2028 deadline and Parent PLUS
A court order ended the SAVE plan in March 2026. From July 1, 2026, borrowers still in SAVE began getting notices with 90 days to choose a new plan; those who do not choose are placed in a Standard or Tiered Standard plan. Borrowers still in ICR, PAYE or SAVE have until July 1, 2028 to move to another available plan. Parent PLUS loans are not eligible for RAP, and a new Parent PLUS loan made on or after July 1, 2026 can only use Tiered Standard.
Frequently asked questions
Which student loan repayment plan is best for me?
It depends on your income, balance, family size and goals, and this page cannot say which is best. It shows the payment and rough total cost under each plan you can use. For your actual loans, use the official Loan Simulator at StudentAid.gov or ask your servicer.
Why can I only pick RAP or Tiered Standard?
Under the 2026 rules, anyone with a loan disbursed on or after July 1, 2026 can use only RAP or Tiered Standard. IBR and the 10-year Standard plan stay available for loans made before that date. Tick the box about loans disbursed on or after July 1, 2026 to see which plans apply.
What happened to SAVE?
A court order ended SAVE in March 2026. Borrowers who were in it received notices from July 1, 2026 with 90 days to pick a new plan. Check your servicer's notice and the SAVE page on StudentAid.gov for your own dates.
This page gives a general estimate, not financial, tax or legal advice. Figures reflect the law as of October 13, 2026 and come from the official sources listed below. See also the student loan calculator for extra payments, the debt-to-income ratio calculator, the paycheck calculator and the budget tracker.