Graduated repayment plan
Continues for existing borrowers · Fixed payment · not PSLF-eligible
Graduated repayment plan. Payments start low and step up, usually every two years, over a 10-year term (up to 30 years if consolidated). Each payment must at least cover the interest, and no payment is more than three times any other. None - fully repaid over the term. Does not count toward PSLF. 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.
How Graduated works
Formula. Payments start low and step up, usually every two years, over a 10-year term (up to 30 years if consolidated). Each payment must at least cover the interest, and no payment is more than three times any other.
Interest. Standard amortization with rising payments; total interest is higher than the 10-year Standard because early payments are small.
Forgiveness. None - fully repaid over the term. Does not count toward PSLF.
Availability. Continues for borrowers whose first loan is before July 1, 2026.
Worked example
This is a fixed plan - the payment is sized to repay your balance over the term. Use the payoff calculator to estimate the monthly amount and total interest for your balance and rate.
Estimate only. Try the calculators with your own numbers.
Pros and cons
| Pros | Cons |
|---|---|
| Lower payments early on when income is lower | Costs more total interest than Standard |
| Still fully repaid within the term | Payments rise on a fixed schedule regardless of your income |
| No income paperwork | Does not count toward PSLF |
Eligibility
All Direct/FFEL borrowers whose first loan is before July 1, 2026.
Frequently asked questions
Does Graduated count toward PSLF?
No. Graduated repayment plan does not count toward Public Service Loan Forgiveness. For PSLF you generally need an income-driven plan such as RAP or IBR.
When is loan forgiveness under Graduated?
None - fully repaid over the term. Does not count toward PSLF.
Who can use Graduated in 2026?
All Direct/FFEL borrowers whose first loan is before July 1, 2026.
Compare with other plans
- Repayment Assistance Plan (RAP) · New - available July 1, 2026
- New tiered Standard plan · New - default for loans on/after July 1, 2026
- Income-Based Repayment (IBR) · Remains available (existing borrowers)
- Standard 10-year plan · Continues for existing borrowers
- Extended repayment plan · Continues for existing borrowers (balance over $30,000)
- SAVE plan (Saving on a Valuable Education) · Closing - vacated by the courts; ending
- Pay As You Earn (PAYE) · Closing - sunsets July 1, 2028
- Income-Contingent Repayment (ICR) · Closing - sunsets July 1, 2028
Sources & accuracy
Plan rules from Federal Student Aid - OBBBA updates and the U.S. Dept of Education. Data as of June 2026. The 2025-2026 rules are still being implemented - this is general information, not financial or legal advice. Verify with your loan servicer and studentaid.gov. See our methodology and disclaimer.
Last updated: 2026-06-22