Check your actual StudentAid.gov loan data and your official servicer messages. This page explains the policy at a high level and does not determine your personal eligibility.
1. The new Repayment Assistance Plan (RAP) is available
RAP became available on July 1, 2026. Current Federal Student Aid guidance describes payments as 1%–10% of adjusted gross income (AGI), divided by 12, reduced by $50 for each dependent claimed on a federal tax return, with a $10 minimum. RAP has a 30-year repayment period. Unlike IBR, it does not generally cap payments at the 10-year Standard Plan amount. Some Parent PLUS and consolidation-loan situations are excluded. See the RAP guide before comparing it against your alternatives.
2. The Tiered Standard Plan is also available
For loans disbursed on or after July 1, 2026, Federal Student Aid lists Tiered Standard as the available fixed-payment plan. The repayment period depends on balance tiers: generally 10 years for balances under $25,000; 15 years under $50,000; 20 years under $100,000; and 25 years for balances over $100,000. Check the official calculator for the exact plan applicable to your records. Payments under Tiered Standard do not count toward PSLF according to the current SAVE transition FAQ.
3. Dates affect which IDR plans you can use
Borrowers with eligible loans disbursed before July 1, 2026 may still be able to use IBR, PAYE, or ICR, depending on loan type and other requirements. A loan disbursed on or after July 1, 2026 can change the available options, and RAP is the main income-driven plan for the new repayment structure. Parent PLUS and certain consolidation situations need special review.
4. SAVE ended in March 2026
Federal Student Aid says a court order ended the SAVE Plan in March 2026. Servicers began notifying SAVE borrowers on July 1, 2026. The 90-day decision period is tied to the date the servicer sent the individual notice; a final 30-day notice may follow. If a borrower fails to choose another eligible plan before the final deadline, the borrower may be moved into a fixed plan. Open the SAVE transition guide and follow the date in your own notice.
5. PAYE and ICR are scheduled to end no later than July 1, 2028
Federal Student Aid says PAYE and ICR will be eliminated no later than July 1, 2028. Borrowers with long-term forgiveness or PSLF goals should compare the official projected timeline, payment count, and available plans instead of waiting until the last moment to understand the transition.
6. A temporary 1% auto-pay rate reduction has a Dec. 31 deadline
Current servicer and Federal Student Aid notices state eligible borrowers who enroll in autopay by December 31, 2026 can receive a temporary 1% interest-rate reduction through June 30, 2028. Published guidance describes eligibility for Direct Loans first disbursed on or after July 1, 2012. Confirm your own loan eligibility, enrollment deadline, and how the discount appears on the account. Read the auto-pay briefing.
7. PSLF employer-rule court decision
On June 30, 2026, a federal court vacated a rule that would have allowed employer disqualification from PSLF based on a “substantial illegal purpose” standard. Federal Student Aid Partners later said the Department was removing the related attestation from the PSLF form to comply with the court order and that no other changes had been made to that form at that time. This specific decision does not mean every PSLF application is automatically approved. Continue using the official PSLF tools and keep your employment/payment records.
Suggested action checklist
- Review every loan, including type, first-disbursement date, and consolidation history.
- Check your repayment plan name and any new servicer notice.
- Compare monthly cost, total repayment, interest, timeline, and forgiveness effects in the official Loan Simulator.
- If enrolled in SAVE, follow your own servicer notice immediately and record the final deadline.
- Compare PAYE or ICR alternatives if you are using either plan and your repayment horizon reaches beyond 2028.
- Verify every decision on StudentAid.gov and with your official servicer before changing or consolidating loans.
Official sources
SAVE transition FAQ · IDR FAQs · Loan Simulator guide · PSLF form update.
The contents reflect the official sources linked here as reviewed on October 11, 2026. Rules and administrative guidance can change. Re-check before acting.