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New Standard Repayment Plan for Student Loans Starts in 2026


Major changes are coming for federal student loan borrowers starting July 1, 2026, as part of President Donald Trump’s One Big Beautiful Bill.


The law replaces the traditional 10-year repayment schedule with a new tiered Standard Repayment Plan based on the amount originally borrowed.

Higher education leaders warn the changes may increase costs for many students and graduates, while the government says the reforms will protect taxpayers and encourage universities to control tuition.

 

How the New Standard Repayment Plan Works

Beginning in 2026, the length of repayment will depend on your original federal student loan balance:

  • Up to $24,999 — 10 years (120 monthly payments)

  • $25,000 to $49,999 — 15 years (180 payments)

  • $50,000 to $99,999 — 20 years (240 payments)

  • $100,000 or more — 25 years (300 payments)

Monthly payments will remain fixed, and any unpaid balance after 30 years will be forgiven.

You’ve earned certain benefits! Make sure you’re getting them here.

 

The Repayment Assistance Plan (RAP) Option

Borrowers will be placed in the new Standard Plan by default but can choose the new Repayment Assistance Plan (RAP) instead.

RAP sets payments based on income and family size, with a minimum of $10 per month even for borrowers with no income.

The income thresholds will not be adjusted for inflation, and interest will not be capped. Debt is forgiven after 30 years.

 

End of Current Income-Driven Plans

By July 1, 2028, several popular income-driven repayment (IDR) plans will be eliminated, including:

  • Saving on a Valuable Education (SAVE)

  • Pay As You Earn (PAYE)

  • Income-Based Repayment (IBR)

  • Income-Contingent Repayment (ICR)

Borrowers on these plans will need to move to either the Standard Plan or RAP.

 

Preparing for the Change

Borrowers should review their current repayment plans, use the Loan Simulator to compare costs, and plan ahead for the end of existing IDR programs.

Those pursuing Public Service Loan Forgiveness (PSLF) should ensure their repayment plan will still qualify.
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