Understanding Repayment

for federal student loans taken out

before July 1, 2026

Explore Repayment Options and Resources:

Overview of Repayment Plans

10-Year Standard Plan

Borrowers are initially placed in the 10-Year Standard plan when they enter repayment unless they apply for a different plan. This plan has fixed monthly payments, and is sometimes called "Level" on servicer websites.
People with unconsolidated loans or consolidated loans with a balance less than $7,500 are eligible for this plan.
You may want to consider this plan if:
- You want to make a bigger dent in your debt
- You're concerned about accruing interest
- Or if you want to get out of the repayment system quickly.
There is no forgiveness aspect to this plan - you will end up paying your entire loan balance and interest accrued.

10 to 30 Year Standard Plan

Consolidated loans with balances of $7,500 or more are eligible for this plan.
Repayment terms are based on the balance of your loan (a larger loan amount will mean a longer repayment term).
This repayment plan is not eligible for Public Service Loan Forgiveness (PSLF).
There is no forgiveness aspect to this repayment plan. You will pay your entire loan balance and interest accrued.

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Fixed Alternative Repayment Plans

All Direct Loans and Federal Family Education Loan Program (FFELP / FFEL) Loans are eligible for the Fixed Alternative repayment plans.

Extended Repayment Plan:
- Payments are fixed.
- Repayment term is 25 years.
- Only available to loan balances of $30,000 or more.
Graduated Repayment Plan:
- Payments start low and increase every two years.
- FFEL and Direct Loans repayment terms depend on loan balance (up to 30 years).
  - Other loan types have 10 year repayment terms.
Extended-Graduated Repayment Plan:
- Payments start low and increase every 2 years.
- Repayment term is 25 years.
- Only available to loan balances of $30,000 or more.

Income-Driven Repayment (IDR) Plans

Monthly payments on IDR plans are calculated using a percentage of your discretionary income, and consider your family size. Payments can be as little as $0/month.
You must recertify your income and family size every year. If your income decreases or you lose your income source, you can recertify your income at any time to get an adjusted, lower monthly payment for the next year.
Loan eligibility varies by plan.
Types of IDR plans:
- Paye As You Earn (PAYE)
- Income Contingent Repayment (ICR)
- Income Based Repayment (IBR)
  - There are two types of IBR - one for loans taken out before July 1, 2014 and one for loans taken out after July 1, 2014.

NEW: Repayment Assistance Plan (RAP)

The Repayment Assistance Plan (RAP) is similar to an IDR plan, but has some significant differences:

Lowest monthly payment is $10/month no matter your income.
Monthly payments are based on 1% - 10% of your Adjusted Gross Income (AGI).
Payments made on RAP cannot be counted towards IDR forgiveness credits on IBR.
Parent Plus loans are not eligible for RAP.

How to Calculate Your Monthly Payment

Use the Repayment Calculator (formerly known as the Loan Simulator) on www.studentaid.gov/repayment-calculator/.
Call your loan servicer. Please note, there are long wait times and there may be misinformation given to you.
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/.

Changes to ICR and PAYE

July 1, 2026

Financial hardship requirement is removed from PAYE, making more borrowers eligible for this plan. Borrowers can enroll in ICR and PAYE to receive IDR credits towards forgiveness and lower monthly payments.

AFTER July 1, 2026

Borrowers with loans taken out BEFORE July 1, 2026 will maintain access to ICR and PAYE (including enrollment).

Borrowers should keep an eye on updates to know when these plans will be phased out.

July 1, 2028

The latest possible date that borrowers will have access to ICR and PAYE.

Borrowers should prepare accordingly to switch to a different plan or be automatically placed in a different plan.

Student Debt Crisis Center

Explore Repayment Options and Resources:

Overview of Repayment Plans

10-Year Standard Plan

Borrowers are initially placed in the 10-Year Standard plan when they enter repayment unless they apply for a different plan. This plan has fixed monthly payments, and is sometimes called "Level" on servicer websites.

People with unconsolidated loans or consolidated loans with a balance less than $7,500 are eligible for this plan.

You may want to consider this plan if:

You want to make a bigger dent in your debt​

You're concerned about accruing interest

Or if you want to get out of the repayment system quickly.

There is no forgiveness aspect to this plan - you will end up paying your entire loan balance and interest accrued.

10 to 30 Year Standard Plan

Consolidated loans with balances of $7,500 or more are eligible for this plan.

Repayment terms are based on the balance of your loan (a larger loan amount will mean a longer repayment term).

This repayment plan is not eligible for Public Service Loan Forgiveness (PSLF).

There is no forgiveness aspect to this repayment plan. You will pay your entire loan balance and interest accrued.

Fixed Alternative Repayment Plans

​All Direct Loans and Federal Family Education Loan Program (FFELP / FFEL) Loans are eligible for the Fixed Alternative repayment plans.

​

Extended Repayment Plan:

Payments are fixed.

Repayment term is 25 years.

Only available to loan balances of $30,000 or more.

Graduated Repayment Plan:

Payments start low and increase every two years.​

FFEL and Direct Loans repayment terms depend on loan balance (up to 30 years).

Other loan types have 10 year repayment terms.​

Extended-Graduated Repayment Plan:

Payments start low and increase every 2 years.​

Repayment term is 25 years.

Only available to loan balances of $30,000 or more.

Income-Driven Repayment (IDR) Plans

​Monthly payments on IDR plans are calculated using a percentage of your discretionary income, and consider your family size. Payments can be as little as $0/month.

You must recertify your income and family size every year. If your income decreases or you lose your income source, you can recertify your income at any time to get an adjusted, lower monthly payment for the next year.

Loan eligibility varies by plan.

Types of IDR plans:

Paye As You Earn (PAYE)​

Income Contingent Repayment (ICR)

Income Based Repayment (IBR)

There are two types of IBR - one for loans taken out before July 1, 2014 and one for loans taken out after July 1, 2014.​​

NEW: Repayment Assistance Plan (RAP)

​The Repayment Assistance Plan (RAP) is similar to an IDR plan, but has some significant differences:

Lowest monthly payment is $10/month no matter your income.​

Monthly payments are based on 1% - 10% of your Adjusted Gross Income (AGI).

Payments made on RAP cannot be counted towards IDR forgiveness credits on IBR.

Parent Plus loans are not eligible for RAP.​

How to Calculate Your Monthly Payment

Use the Repayment Calculator (formerly known as the Loan Simulator) on www.studentaid.gov/repayment-calculator/.

Call your loan servicer. Please note, there are long wait times and there may be misinformation given to you.

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/.

Changes to ICR and PAYE

July 1, 2026

Financial hardship requirement is removed from PAYE, making more borrowers eligible for this plan. Borrowers can enroll in ICR and PAYE to receive IDR credits towards forgiveness and lower monthly payments.

AFTER July 1, 2026

Borrowers with loans taken out BEFORE July 1, 2026 will maintain access to ICR and PAYE (including enrollment). Borrowers should keep an eye on updates to know when these plans will be phased out.

July 1, 2028

The latest possible date that borrowers will have access to ICR and PAYE. Borrowers should prepare accordingly to switch to a different plan or be automatically placed in a different plan.

Student Debt
Crisis Center

You want to make a bigger dent in your debt

All Direct Loans and Federal Family Education Loan Program (FFELP / FFEL) Loans are eligible for the Fixed Alternative repayment plans.

Payments start low and increase every two years.

Other loan types have 10 year repayment terms.

Payments start low and increase every 2 years.

Monthly payments on IDR plans are calculated using a percentage of your discretionary income, and consider your family size. Payments can be as little as $0/month.

Paye As You Earn (PAYE)

There are two types of IBR - one for loans taken out before July 1, 2014 and one for loans taken out after July 1, 2014.

The Repayment Assistance Plan (RAP) is similar to an IDR plan, but has some significant differences:

Lowest monthly payment is $10/month no matter your income.

Parent Plus loans are not eligible for RAP.

Borrowers with loans taken out BEFORE July 1, 2026 will maintain access to ICR and PAYE (including enrollment).

Borrowers should keep an eye on updates to know when these plans will be phased out.

The latest possible date that borrowers will have access to ICR and PAYE.

Borrowers should prepare accordingly to switch to a different plan or be automatically placed in a different plan.