Borrower Currently In Repayment

Borrower Currently In Repayment

You're currently repaying your student loans or are in deferment/forbearance

Transition To New Repayment Plans:

Your existing federal loan terms are not changing: However, available repayment plan options are

You will receive more information about transitioning to an available repayment plan directly from your loan servicer.

Available Options after July 1, 2026:

Standard Repayment Plan

  • Fixed payments over 10-25 years (based on debt amount)
  • Pays off loans fastest, lowest total interest

Repayment Assistance Plan (RAP)

  • Income-based payments (minimum $10/month)
  • Forgiveness after 30 years (360 payments)
  • Good for variable income or public service careers

Income-Based Repayment (IBR)

  • Only available if you borrowed prior to July 1, 2026, and do not borrow after July 1, 2026
  • Payments capped at 10% of discretionary income
  • Forgiveness after 20 years
Current Plan Transition Deadline Comparable Plan Options
SAVE July 1, 2028 RAP or IBR
PAYE July 1, 2028
ICR June 30, 2028
IBR No deadline Remain in IBR or RAP
Standard No deadline Remain in Standard/Graduated/Extended,
or New Standard (repayment term determined by total debt)
Graduated
Extended

Parent PLUS Borrowers:

Alert: New Parent PLUS loans taken after July 1, 2026, are limited to $20,000/year and $65,000 lifetime limits per child

For some families, an older child who is currently in college may qualify for an exception (prior loan limits apply), while new loan limits apply to a younger sibling in the same academic year.

For Parent PLUS loans taken prior to July 1, 2026:

  • Parent Borrowers must use the Standard Repayment Plan (no penalty for early repayment)
  • May not use RAP
  • May consolidate to access ICR, but must transition out of ICR by June 30, 2028

Public Service Loan Forgiveness (PSLF):

PSLF continues: Current PSLF requirements continue until further notice

Requirements:

  • Full-time work for a qualifying employer (government/eligible nonprofit)
  • Payments made under a qualifying repayment plan
  • 120 qualifying payments

Transition details:

  • Payments made on SAVE/PAYE/ICR should count toward PSLF
  • Must select a new qualifying plan by the deadlines
  • RAP and amended IBR expected to qualify (awaiting confirmation)

Recommendations:

  • Continue making qualifying payments
  • Submit Employment Certification Forms annually
  • Monitor guidance on qualifying plans
  • Plan transition before deadlines