For federal loans disbursed after July 1, 2026, two loan repayment plans will be available.
Q: What loan repayment options will be available for federal loans disbursed after July 1, 2026?
A: Two plans will be available:
- Standard Repayment Plan: Fixed-term repayment over 10, 15, 20 or 25 years based on the total loan amount.
- Repayment Assistance Plan (RAP): An income-driven plan with monthly payments ranging from 1 percent to 10 percent of Adjusted Gross Income. Minimum monthly payment is $10.
A note: If a borrower does not select a plan, they will be automatically enrolled in the Standard Repayment Plan.
Q: Will current borrowers be affected by the new loan repayment plans?
A: If a borrower takes out new loans after July 1, 2026, all existing loans must move to one of the new plans.
- If no new loans are taken out, borrowers can continue with existing plans (e.g., IBR, standard) or opt into RAP by July 1, 2028.
- Parent PLUS borrowers must repay all loans under the Standard Plan, as they are not eligible for RAP.
October 28, 2025