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)
Income-Based Repayment (IBR)
Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR)
Who is eligible?
Dates Available
Term
How are payments set?
How is unpaid monthly interest treated?
All federal loan borrowers
10, 25 year, and graduated plans available currently; tiered plans for borrowers after July 1, 2026
10 – 25 years based on debt load
Fixed payments based on repayment term
Not applicable as monthly payments cover accruing interest
All federal loan borrowers (except for Parent PLUS borrowers)
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
Up to 30 years, then taxable forgiveness
1-10% of annually reported adjusted gross income (AGI); $10 minimum monthly payment
Not charged to the borrower
Federal loan borrowers with no new loans on or after July 1, 2026
Past federal Direct Loan borrowers
Not going away for current borrowers, but no new enrollments if any loans borrowed after July 1, 2026
Pre-2014 borrowers: 25 years; Post-2014 borrowers: 20 years
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
AccessLex.org
Sunsetting July 1, 2028
Pre-2014 borrowers: 15% of discretionary income; Post-2014: 10% of discretionary income
Percentage of reported discretionary income
Accrued, thereby increasing total balance owed over the maximum term
PAYE/ICR: Accrued, thereby increasing total balance owed over the maximum term; SAVE: Subject to outcome of pending legal action
AccessLex Center for Education and Financial Capability®