Education · US

Federal Student Loan Repayment Plans in 2026: What Changed

Federal student loan repayment changed more on 1 July 2026 than at any point in decades. The SAVE plan ended, a new Repayment Assistance Plan replaced most income-driven options, and several familiar plans closed to new loans. If you have not looked at your plan since 2025, the one you are on may no longer exist.

What actually happened

• SAVE is gone. Vacated by court order on 10 March 2026 and unavailable from 1 July 2026. Borrowers enrolled in it were notified by their servicer and given 90 days to choose another plan.
• RAP replaced most income-driven plans from 1 July 2026 for new borrowing.
• IBR survives permanently — the only legacy income-driven plan that does — and remains available to borrowers with Direct Loans disbursed before 1 July 2026.
• PAYE and ICR closed to loans made on or after 1 July 2026. Borrowers with only older Direct Loans can still apply until 1 July 2027, and both plans end on 30 June 2028.

The Repayment Assistance Plan (RAP)

RAP is the new default income-driven option. Its mechanics:

• Payments are a percentage of adjusted gross income, on a sliding scale.
• The scale starts at a flat floor of $10 and rises gradually to a maximum of 10% of AGI.
• There is a $10 minimum monthly payment — payable even by borrowers reporting very low or no income. This is the sharpest break from SAVE, under which many borrowers had a genuine $0 payment.

That $10 floor sounds trivial and mostly is, but it matters for borrowers between jobs or in unpaid training, who previously owed nothing at all.

Which plan applies to you

Your situation	What is available
All loans taken before 1 Jul 2026	Keep most existing options, plus RAP as a new choice
Any loan on or after 1 Jul 2026	RAP and the standard plans; PAYE and ICR are closed
Previously on SAVE	Must choose a new plan; IBR and RAP are the main income-driven options
Seeking PSLF	Confirm your plan still counts as qualifying before switching

How to choose

1. Pull your actual loan list at StudentAid.gov — disbursement dates decide your options, and many borrowers have a mix of pre- and post-July-2026 loans.
2. If you are pursuing forgiveness, the lowest monthly payment usually wins, because the balance is written off at the end regardless.
3. If you are not pursuing forgiveness, the lowest total interest usually wins — which often means paying more each month, not less.
4. Check PSLF qualification before switching. Moving to a non-qualifying plan can stop your count without any warning.
5. Re-certify income on time. A missed certification can push you to a standard payment overnight — frequently several hundred dollars more a month.

The strategic point

Income-driven repayment is not a discount. It is a cash-flow tool: lower payments mean a longer term and more total interest unless forgiveness actually arrives. Choosing between RAP and IBR is really a bet on whether you will reach forgiveness. If you will, minimise payments. If you will not, minimise interest — and treat the income-driven option as temporary relief rather than a plan.

Frequently asked questions

What happened to the SAVE plan?
SAVE was vacated by court order on 10 March 2026 and became unavailable on 1 July 2026. Borrowers enrolled in it were notified by their servicer and given 90 days to select a different repayment plan.

What is the Repayment Assistance Plan (RAP)?
RAP replaced most income-driven repayment plans from 1 July 2026. Payments are a percentage of adjusted gross income on a sliding scale rising to a maximum of 10% of AGI, with a $10 minimum monthly payment even for borrowers reporting very low or no income.

Is IBR still available in 2026?
Yes. Income-Based Repayment is the only legacy income-driven plan that survives permanently, and it remains available to borrowers with Direct Loans disbursed before 1 July 2026.

Can I still use PAYE or ICR?
Both closed to loans made on or after 1 July 2026. Borrowers whose Direct Loans all predate that can still apply until 1 July 2027, and both plans end on 30 June 2028.

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• Debt payoff calculator
• Student loan forgiveness explained
• College inflation planning
• The true cost of college
• College cost calculator

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Sources

• U.S. Department of Education / Federal Student Aid — repayment plan changes effective 1 July 2026
• One Big Beautiful Bill Act — federal student loan repayment provisions
• Published servicer guidance on the SAVE plan wind-down and 90-day election window

Figures compiled September 2026 from public sources and not individually verified. Repayment rules, plan availability and forgiveness terms are changing rapidly — confirm on studentaid.gov and with your servicer before acting. General information, not financial or legal advice.