RepayPlan

New borrower after July 1, 2026? Your only two repayment options

By Editorial team · 2026-06-19

In short: Borrowers whose first federal loan is disbursed on or after July 1, 2026 can choose only two plans: the income-driven Repayment Assistance Plan (RAP) or the new tiered Standard plan (fixed payments over 10-25 years based on balance). IBR and the classic plans are not available to them. Only RAP counts toward PSLF.

If your first federal student loan is disbursed on or after July 1, 2026, the One Big Beautiful Bill Act limits you to two plans. Here is how they differ.

Your two choices

FeatureRAP (income-driven)New tiered Standard (fixed)
Payment1-10% of AGI, minus $50/dependentFixed amount over a balance-based term
TermUp to 30 years, then forgiveness10-25 years (full payoff)
Counts toward PSLFYesNo
Unpaid interestWaivedAccrues normally
Recertify incomeYes, yearlyNo

Source: U.S. Department of Education OBBBA fact sheet, as of June 2026.

The new Standard plan terms

The fixed plan’s length depends on your starting balance:

Starting balanceRepayment term
Under $25,00010 years
$25,000 - $49,99915 years
$50,000 - $99,99920 years
$100,000 and above25 years

Minimum payment is $50/month (or the balance if smaller).

How to choose

Estimate both with the comparison calculator, and read how RAP works and the new Standard plan.

General information, not financial or legal advice. Rules are still being implemented - verify with your servicer and studentaid.gov.

Frequently asked questions

What plans can a 2026 new borrower use?

Only the Repayment Assistance Plan (RAP) and the new tiered Standard plan. IBR, PAYE, ICR, SAVE and the classic Standard/Graduated/Extended plans are limited to borrowers whose first loan is before July 1, 2026.

Which one counts toward PSLF?

Only RAP. The new tiered Standard plan does not count toward Public Service Loan Forgiveness, so if you work in public service you should use RAP.

What is the new Standard plan term?

Fixed payments over a term set by balance: under $25,000 = 10 years; $25,000-$49,999 = 15 years; $50,000-$99,999 = 20 years; $100,000+ = 25 years.

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Last updated: 2026-06-19