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Open the Borrowing & Debt tool →The 2025 budget law rewrote federal student loan repayment. From July 1, 2026 there is a new income-driven plan, the Repayment Assistance Plan, and a new Standard plan for loans made from that date. SAVE, PAYE and income-contingent repayment close, and borrowers on them have until July 1, 2028 to choose another plan.
The Repayment Assistance Plan charges a share of your adjusted gross income, from 1% to 10% depending on how much it is, less $50 a month for each dependent, and never less than $10 a month. If your payment does not cover the month's interest, the rest is not charged, and your principal still falls by at least $50 or your payment, whichever is less. Whatever is left after 360 qualifying payments is cancelled.
The new Standard plan is a fixed payment over 10 to 25 years, longer for a larger balance. Income-based repayment stays open for loans made before July 1, 2026: 15% of income above 150% of the poverty line, or 10% if you first borrowed on or after July 1, 2014, never more than the 10-year standard payment.
We work out each plan month by month from your balance, rate and income, with your income growing at the rate you choose. We show each plan's payment now, what you pay in total, and when it ends. We do not pick one, and some moves between plans are hard to undo. A balance forgiven after 2025 is taxable income under current law.
Public Service Loan Forgiveness, consolidation, and parent PLUS loans are not modeled. The Department of Education decides which plans you can use, and your servicer applies the terms. Its Loan Simulator uses your actual loans. This is information about published rules, not legal, tax, or financial advice.
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