What it is
Federal student loans come with flexible repayment options and forgiveness programs that private loans usually don't. But the landscape changed significantly in 2025-26 under the One Big Beautiful Bill Act: a new income-driven plan (RAP) replaces older ones for newer borrowers, and several existing plans are being phased out. Here's how repayment works now.
How it works
- Standard RepaymentFixed monthly payments (a new tiered Standard plan applies to loans made from July 1, 2026).
- Repayment Assistance Plan (RAP)A new income-driven plan for loans made on or after July 1, 2026 — payments based on income, with a path to forgiveness.
- Older income-driven plansSAVE, PAYE, and ICR are being eliminated (SAVE is ending; the others sunset by July 1, 2028), so borrowers are moving to RAP or the tiered Standard plan.
- Deferment & forbearanceTemporary pauses for hardship, school, or other qualifying reasons.
Who qualifies
Your options depend on when you borrowed and your loan types. Newer borrowers (loans from July 2026) use RAP or the tiered Standard plan; existing borrowers with no new loans may keep certain current plans for a time. Check your specific loans and servicer at studentaid.gov.
How much & what it covers
Public Service Loan Forgiveness (PSLF) can forgive your remaining federal Direct Loan balance after 120 qualifying payments while working full-time for a government or qualifying nonprofit employer. Income-driven plans also offer forgiveness of any remaining balance after a set repayment period. Confirm current PSLF and IDR-forgiveness rules, as they're being updated.
Terms to know
- ServicerThe company that manages your loan payments
- Income-driven repayment (IDR)Payments based on income (RAP is the new version)
- PSLFPublic Service Loan Forgiveness — forgiveness after qualifying payments in public-service work
- Grace periodTime after leaving school before payments start (usually six months)
- CapitalizationUnpaid interest added to your balance
Tips to maximize it
- Know your servicer and log inManage everything at studentaid.gov
- Pick the right planStandard vs income-driven (RAP) depends on your income and goals
- Pursue PSLF if you qualifyPublic-service workers can have loans forgiven
- Never pay for helpRepayment and forgiveness enrollment are free — beware scams
- Recertify income for IDRIncome-driven plans require annual updates
Common mistakes to avoid
- Ignoring your loans in the grace periodSet up repayment before it ends
- Missing PSLF certificationCertify your employment regularly if pursuing PSLF
- Paying a 'debt relief' companyThese services are free through your servicer
- DefaultingIt has serious consequences — contact your servicer if you're struggling
Frequently asked questions
- What's the new repayment plan?RAP (the Repayment Assistance Plan) — an income-driven plan for loans made from July 2026.
- What happened to SAVE?It's being eliminated; older IDR plans (PAYE, ICR) sunset by July 2028.
- Is PSLF still available?Yes — forgiveness after 120 qualifying payments in public-service work (confirm current rules).
- Do I pay to enroll in a plan or forgiveness?No — it's free at studentaid.gov; beware paid 'debt relief' scams.
- How do I know my options?Log in at studentaid.gov and check your specific loans and servicer.
Key facts
- StandardFixed payments (new tiered plan from 2026)
- Income-drivenRAP (for loans from July 2026)
- Phasing outSAVE (ending) · PAYE/ICR (by 2028)
- ForgivenessPSLF (120 payments, public service)
- Manage & enrollFree at studentaid.gov
Where to learn more
Manage your loans at the official source: