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Understanding Repayment
for federal student loans taken out
after July 1, 2026
Explore the NEW Repayment Options and Resources:
Eligibility - What to Know About the New Repayment System
​If you have ANY federal student loan issued to you on or after July 1, 2026 then your entire loan portfolio will only be eligible for the Tiered Standard Plan or the Repayment Assistance Plan (RAP).
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Consolidating ANY of your federal student loans on or after July 1, 2026 will also put your entire loan portfolio in the new repayment system and your loans will only be eligible for the Tiered Standard Plan or RAP.
Overview of Repayment Plans
Tiered Standard Plan
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Borrowers entering repayment with loans on or after July 1, 2026 are initially placed in the Tiered Standard plan unless they apply for the Repayment Assistance Plan (RAP).
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The Tiered Standard plan has fixed monthly payments, meaning you will pay the same amount until the loan is paid off.
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Repayment timelines are based on your loan balance (see chart below).
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There is no forgiveness aspect to this plan - you will end up paying your entire loan balance and interest accrued.
Tiered Standard Plan
Repayment Structure
Repayment Assistance Plan (RAP)
​The Repayment Assistance Plan (RAP) is similar to an IDR plan, but has some significant differences:
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Lowest monthly payment is $10/month no matter your income.​
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Monthly payments are based on 1% - 10% of your Adjusted Gross Income (AGI) (see chart below).
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The repayment timeline on RAP is 30 years, or 360 monthly payments. Once this threshold is reached, the remaining balance on your loans will be forgiven.
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All direct loans except for Parent Plus loans are eligible for RAP.​
Repayment Assistance Plan (RAP)
Repayment Structure
How to Calculate Your Monthly Payment
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Use the Repayment Calculator (formerly known as the Loan Simulator) on www.studentaid.gov/repayment-calculator/.
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Call your loan servicer. Please note, there are long wait times and there may be misinformation given to you.
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Use the EDCAP Tool to simulate monthly payments on different plans. Please note, this tool cannot tell you what plan you are eligible for. You can find the tool at www.edcapny.org/resources-for-borrowers/repayment-plan-calculator/.
Parent Plus Loan Information
Parent Plus loans issued or consolidated on or after July 1, 2026 will have the following eligibility restrictions:
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ELIGIBLE for the Tiered Standard plan
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NOT ELIGIBLE for the Repayment Assistance Plan (RAP) or any Income-Driven Repayment Plans
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NOT ELIGIBLE for the 10 Year or 10-30 Year Standard plans
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NOT ELIGIBLE for Fixed Alternative plans (Extended, Graduated, or Extended Graduated)
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