The repayment plans in 2026 at a glance
Borrowers with loans made before July 1, 2026, can choose RAP, IBR or a standard plan. Anyone with a loan made on or after that date has two options: RAP or the tiered standard plan. Every income-driven payment is recalculated each year from your tax return.
| Plan | Monthly payment | Forgiveness | Status in 2026 |
|---|---|---|---|
| RAP | 1% to 10% of AGI ÷ 12, minus $50 per dependent, at least $10; unpaid interest waived | After 360 qualifying payments (30 years) | Open since July 1, 2026, to all Direct Loan borrowers except parent PLUS |
| IBR | 10% (15% for pre-July 2014 borrowers) of income above 150% of the poverty line, capped at the 10-year standard amount | After 20 years (25 for pre-2014 borrowers) | Open for loans made before July 1, 2026; no hardship test since the 2025 law |
| Standard | Fixed amount over 10 years | None | Open for loans made before July 1, 2026; the default for SAVE borrowers who do not choose |
| Tiered standard | Fixed amount over 10, 15, 20 or 25 years by balance (under $25,000, $50,000, $100,000, or more) | None | Open since July 1, 2026; required alongside RAP for new loans |
| SAVE | Ended by court order in March 2026 | n/a | Borrowers get a 90-day servicer notice, then a 30-day final notice, then the Standard plan |
| PAYE and ICR | 10% of discretionary income (PAYE); 20% or a 12-year amount (ICR) | 20 years (PAYE), 25 years (ICR) | Closed to loans made on or after July 1, 2026; end no later than July 1, 2028 |
How RAP and IBR count your income
RAP works from your whole adjusted gross income. The rate is 1% for AGI over $10,000 up to $20,000 and rises one point per $10,000 band to 10% above $100,000; AGI of $10,000 or less pays a flat $10 a month. Dependents on your tax return take $50 a month off each. IBR instead protects 150% of the HHS poverty guideline for your family size, which for 2026 is $23,940 for one person and $49,500 for four in the 48 states and DC, and charges 10% or 15% of the rest.
For a single borrower with $30,000 at 6.5% and $40,000 of AGI, RAP is $100 a month, IBR (new borrower) is $133.83, and the 10-year standard plan is $340.64. The RAP vs IBR calculator runs this comparison for your own numbers, and the RAP calculator shows how much interest RAP waives and how the $50 principal match moves your balance.
Dates that matter
July 1, 2026: RAP and the tiered standard plan opened, new loans are limited to those two, and servicers began sending SAVE borrowers their 90-day notices, which every SAVE borrower receives before the end of 2026. December 31, 2026: enrolling in auto pay by this date earns a 1 percentage point interest rate reduction through June 30, 2028. July 1, 2028: PAYE and ICR end, and anyone still on them who has not chosen is moved to RAP, or to IBR for loans RAP cannot take.
Questions
What is the Repayment Assistance Plan?
The income-driven plan created by the July 2025 law and available since July 1, 2026. You pay 1% to 10% of your AGI divided by 12, minus $50 per dependent, with unpaid interest waived, a principal match of up to $50 a month, and forgiveness after 360 qualifying payments.
Is IBR still available?
Yes, for Direct and FFEL loans made before July 1, 2026. The 2025 law removed the partial financial hardship requirement, so any eligible borrower can enroll. New loans from July 1, 2026, can only use RAP or the tiered standard plan.
What do SAVE borrowers have to do?
Choose another plan within 90 days of the servicer notice (sent from July 1, 2026), or within the final 30-day notice that follows. Otherwise you are placed in the Standard plan.
Do payments on older plans count toward RAP forgiveness?
Yes. Payments under IBR, payments at least equal to the 10-year standard amount on any plan, and payments made before July 1, 2028, under ICR, PAYE or SAVE all count toward the 360.
Can parent PLUS loans use RAP?
No. Parent PLUS loans and consolidation loans that repaid them are excluded from RAP; a consolidation loan that repaid parent PLUS can use IBR only if at least one payment was made on it under ICR before July 1, 2028.
More calculators
Tax calculators · Health calculators · Mortgage calculators · Money calculators · AI calculators · All tools