Federal Loan Repayment Plans At A Glance
Student Loan Repayment Plans and Upcoming Changes as of Summer 2025
The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, is bringing big changes to the student loan repayment landscape for current and future borrowers. The repayment plan information below is subject to continuing interpretation, guidance, and policy updates.
Standard Repayment Plan
Repayment Assistance Plan (RAP)
All federal loan borrowers 10, 25 year, and graduated plans available currently; tiered plans for borrowers after July 1, 2026
All federal loan borrowers (except for Parent PLUS borrowers)
Income-Based Repayment (IBR)
Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR)
Federal loan borrowers with no new loans on or after July 1, 2026
Current/past borrowers can choose RAP or Income-Based Repayment (IBR) plan; Borrowers with new loans on or after July 1, 2026 can only use RAP for their income-driven repayment (IDR) plan
10 – 25 years based on debt load Fixed payments based on repayment term
Not applicable as monthly payments cover accruing interest
Not going away for current borrowers, but no new enrollments if any loans borrowed after July 1, 2026
Up to 30 years, then taxable forgiveness
Pre-2014
borrowers: 25 years;
Post-2014
borrowers: 20 years
1-10% of annually reported adjusted gross income (AGI); $10 minimum monthly payment
Pre-2014
borrowers: 15% of discretionary income;
Post-2014: 10% of discretionary income
Not charged to the borrower
Accrued, thereby increasing total balance owed over the maximum term
Past federal Direct Loan borrowers
Current borrowers in these plans must transfer out by July 1, 2028 (subject to pending legal action for the current SAVE forbearance), or will be moved to RAP
Sunsetting July 1, 2028
Percentage of reported discretionary income
PAYE/ICR: Accrued, thereby increasing total balance owed over the maximum term; SAVE: Subject to outcome of pending legal action