Federal student loan repayment in 2026
What the One Big Beautiful Bill Act changed - RAP, the new Standard plan, IBR, PSLF - plus free estimators.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, reshaped federal student loan repayment. From July 1, 2026 there are two new plans: the income-driven Repayment Assistance Plan (RAP) - a percentage of your AGI (1-10%), minus $50/month per dependent, with unpaid interest waived and forgiveness after 30 years - and a new tiered Standard plan with a fixed term that scales with your balance (10-25 years). Borrowers whose first loan is on or after July 1, 2026 can use only those two. IBR stays for existing borrowers; SAVE, PAYE and ICR are closing (move to IBR or RAP by July 1, 2028). General information, not advice.
Source: Federal Student Aid - OBBBA updates. Data as of June 2026.
General information, not financial or legal advice. Federal student loan rules are changing in 2025-2026 under the One Big Beautiful Bill Act - figures here are estimates from public sources and the final program rules are still being implemented. Always verify with your loan servicer and studentaid.gov. See our disclaimer.
The 2026 repayment plan landscape
Every current federal repayment plan, whether it is income-driven, whether payments count toward PSLF, and its 2026 status. See full plan details.
| Plan | Type | Counts toward PSLF | 2026 status |
|---|---|---|---|
| Repayment Assistance Plan (RAP) | Income-driven | Yes | New - available July 1, 2026 |
| New tiered Standard plan | Fixed | No | New - default for loans on/after July 1, 2026 |
| Income-Based Repayment (IBR) | Income-driven | Yes | Remains available (existing borrowers) |
| Standard 10-year plan | Fixed | No | Continues for existing borrowers |
| Graduated repayment plan | Fixed | No | Continues for existing borrowers |
| Extended repayment plan | Fixed | No | Continues for existing borrowers (balance over $30,000) |
| SAVE plan (Saving on a Valuable Education) | Income-driven | Yes | Closing - vacated by the courts; ending |
| Pay As You Earn (PAYE) | Income-driven | Yes | Closing - sunsets July 1, 2028 |
| Income-Contingent Repayment (ICR) | Income-driven | Yes | Closing - sunsets July 1, 2028 |
New (2026): RAP, New Standard. Closing: SAVE, PAYE, ICR.
Estimate your RAP payment
RAP launches July 1, 2026. Enter your AGI and dependent children to estimate the monthly payment. Full math on the RAP calculator and the RAP plan page.
2025-26 Direct Loan interest rates
Loans first disbursed July 1, 2025 - June 30, 2026. These fixed rates apply for the life of the loan.
| Loan type | Borrower | Fixed rate |
|---|---|---|
| Direct Subsidized & Unsubsidized (undergraduate) | Undergraduate students | 6.39% |
| Direct Unsubsidized (graduate/professional) | Graduate & professional students | 7.94% |
| Direct PLUS (Parent and Grad PLUS) | Parents and (existing) grad students | 8.94% |
Source: Federal Student Aid / FSA Partners — Interest Rates for New Direct Loans. Data as of June 2026.
Fixed rates set annually for the life of the loan, equal to the high yield of the final 10-year Treasury note auction before June 1 plus a statutory add-on. The 2026-27 rates (loans disbursed on/after July 1, 2026) differ - verify at studentaid.gov. OBBBA ends new Grad PLUS borrowing for students whose first loan is on/after July 1, 2026.
Explore
RAP, IBR, Standard, and the closing plans.
CalculatorsRAP, IBR, plan comparison, payoff timeline.
RAP by incomeWorked RAP payments at common incomes.
GuidesOBBBA timeline, PSLF, discretionary income.
Poverty guidelinesThe 2025 HHS table that drives IBR.
Blog2026 explainers and updates.
Frequently asked questions
What changed for federal student loans in 2026?
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, overhauled federal repayment. From July 1, 2026 there is a new income-driven Repayment Assistance Plan (RAP) and a new tiered Standard plan. Borrowers whose first loan is on or after July 1, 2026 can use only those two plans. SAVE, PAYE and ICR are closing, and borrowers on them must move to IBR or RAP by July 1, 2028. IBR remains for existing borrowers. This is general information, not advice - verify at studentaid.gov.
What is the Repayment Assistance Plan (RAP)?
RAP is the new income-driven plan available July 1, 2026. Your monthly payment is a percentage of your total adjusted gross income (AGI) on an 11-band scale - a flat $10/month if your AGI is $10,000 or less, then 1% up to 10% as income rises - minus $50/month per dependent child, with a $10 floor. Unpaid interest is waived and up to $50/month of principal is matched. Remaining balance is forgiven after 360 payments (30 years), and it counts toward PSLF.
Which repayment plan can new borrowers use?
If your first federal loan is disbursed on or after July 1, 2026, only two plans are available: the Repayment Assistance Plan (RAP) and the new tiered Standard plan. IBR, the classic income-driven plans, and the old Standard/Graduated/Extended plans are limited to borrowers whose first loan is before July 1, 2026.
Is my SAVE/PAYE/ICR plan going away?
Yes. SAVE was blocked and then vacated by the courts in 2025-2026 and is ending; PAYE and ICR are closed to new enrollees and sunset entirely by 2028. Affected borrowers must move to IBR or RAP. After July 1, 2026, SAVE borrowers get a short window (about 90 days) to choose a new plan or be reassigned. Confirm your deadline with your servicer.
Sources & accuracy
Plan rules from Federal Student Aid - OBBBA updates and the U.S. Dept of Education - Simplifying Student Loan Repayment; rates from Federal Student Aid; poverty guidelines from HHS/ASPE. Data as of June 2026. These are estimates and general information, not financial or legal advice - the 2025-2026 rules are still being implemented, so verify with your servicer and studentaid.gov. See our methodology and disclaimer.
Last updated: 2026-06-22