Which student loan plans can you still use in 2026?
It depends on each loan's type and the date it was first paid out. A loan disbursed on or after July 1, 2026 can use only Tiered Standard or RAP. Older loans keep more choices, though if you hold a mix, some plans may fit only some of your loans.
| Plan | Who can use it | Worth knowing |
|---|---|---|
| Standard | Borrowers with no Direct Loan made on or after July 1, 2026 | Fixed for 10 years. Consolidation Loans run 10 to 30 years. |
| Graduated | Same group as Standard | Starts lower and rises, usually every two years. |
| Extended | Same group, with more than $30,000 in Direct Loans | Up to 25 years. |
| Tiered Standard | Borrowers with a Direct Loan made on or after July 1, 2026 | Their default plan. Payments do not count toward PSLF. |
| IBR | Direct and FFEL loans disbursed before July 1, 2026 | New borrowers since July 2014 pay on a 10% share with forgiveness after 20 years. Earlier borrowers pay 15% and wait 25 years. |
| RAP | Direct Loans disbursed at any time. FFEL and Perkins loans only if consolidated. | Never parent PLUS loans, even consolidated. Forgiveness after 30 years. |
| PAYE and ICR | Limited groups with older loans. Not shown in this calculator. | End no later than July 1, 2028. |
| SAVE | No one | Ended by court order in March 2026. |
Still on SAVE? You get 90 days from your servicer's notice, then a final 30-day notice. If you don't choose, you're placed on Standard or Tiered Standard. On $45,000 at 6.5% with a $58,000 income, that's $511 a month, when RAP would start near $242.
What each plan costs on a $45,000 loan
The lowest payment is almost never the lowest total. Here is one borrower at 6.5%, earning $58,000 with 3% yearly raises, single with no dependents. Not every row is open to every borrower, so check the table above first.
| Plan | First payment | Time | Total paid |
|---|---|---|---|
| Standard (10 years) | $511 | 10 yrs | $61,316 |
| Tiered Standard (15 years) | $392 | 15 yrs | $70,559 |
| Extended (25 years) | $304 | 25 yrs | $91,154 |
| Graduated (10 years) | $444 | 10 yrs | $62,548 |
| IBR (10% of discretionary income) | $284 | 15 yrs 9 mos | $76,054 |
| Repayment Assistance Plan (RAP) | $242 | 15 yrs 3 mos | $75,098 |
The Graduated row assumes payments rise 8% every two years. That step is this calculator's estimate, and your servicer sets the real schedule.
Tiered Standard: where a small balance change lengthens your term
The term depends on your total Direct Loans when you enter repayment, so one dollar can add five years. At 6.5%, $24,999 costs $284 a month over 10 years, and $25,000 costs $218 over 15 years. The monthly bill falls, but interest rises from $9,064 to $14,200.
| Direct Loans | Term | Monthly | Total interest |
|---|---|---|---|
| $15,000 | 10 years | $170 | $5,438 |
| $24,999 | 10 years | $284 | $9,064 |
| $25,000 | 15 years | $218 | $14,200 |
| $49,999 | 15 years | $436 | $28,398 |
| $50,000 | 20 years | $373 | $39,470 |
| $99,999 | 20 years | $746 | $78,938 |
| $100,000 | 25 years | $675 | $102,563 |
Federal Student Aid says eligible borrowers enrolled in auto pay by Dec. 31, 2026 get a 1% rate cut through June 30, 2028. On $45,000, that's about $37.50 less interest a month.
How much will my RAP payment be?
Take your adjusted gross income, multiply by your band's percentage, divide by 12, and subtract $50 per dependent you claim. The result can't go below $10. The band is 1% for AGI just over $10,000, rises one point per $10,000, and reaches 10% over $100,000.
RAP payment = (AGI × band % ÷ 12) − ($50 × dependents), minimum $10| AGI | RAP, no dependents | IBR, single | RAP, 2 dependents | IBR, family of 3 |
|---|---|---|---|---|
| $30,000 | $50 | $51 | $10 | $0 |
| $40,000 | $100 | $134 | $10 | $0 |
| $50,000 | $167 | $217 | $67 | $75 |
| $60,000 | $250 | $301 | $150 | $159 |
| $75,000 | $438 | $426 | $338 | $284 |
| $100,000 | $750 | $634 | $650 | $492 |
| $120,000 | $1,000 | $801 | $900 | $659 |
The trap is the band edge. The percentage applies to all your AGI, so crossing a line raises the payment on every dollar. At $50,000 the payment is $167. At $50,001 it's $208, which is $500 more a year for one extra dollar. Pretax 401(k) deferrals aren't counted in your W-2 wages, so they can lower AGI if you're just over a line. Roth contributions don't.
RAP has no payment cap. IBR stops at the 10-year Standard amount, and the RAP rule sets no such limit. At a $120,000 AGI on this $45,000 loan, RAP asks $1,000 a month, while IBR stays at $511.
What happens when your RAP payment doesn't cover the interest?
The unpaid interest is waived and the balance still falls, as long as you make the full payment on time. A borrower owing $100,000 at 7% with a $40,000 AGI pays $100 against $583 of first-month interest.
The government also adds a principal match. Your principal falls by at least the amount you paid, up to $50 a month. Here that leaves $99,400 after a year. The catch is the pace: with flat income, $82,000 would still be left for forgiveness after 30 years.
Paying extra needs care. Under the rule, an overpayment moves your next due date forward unless you opt out, and months with no due date earn no subsidy or match. Ask your servicer not to advance your due date.
Does loan forgiveness still save money once it is taxed?
Sometimes, and the tax bill can be large. Federal Student Aid says income-driven balances discharged on or after Jan. 1, 2026 are taxed as federal income, and states will likely tax them too. Compare three plans on $120,000 at 7.5%, with a $70,000 income and 3% raises.
| Plan | First payment | Time | Total paid | Forgiven |
|---|---|---|---|---|
| Standard (10 years) | $1,424 | 10 yrs | $170,931 | $0 |
| IBR (10% of discretionary income) | $384 | 20 yrs | $140,212 | $159,788 |
| Repayment Assistance Plan (RAP) | $350 | 28 yrs 6 mos | $284,932 | $0 |
IBR's $159,788 would arrive as income in one year. At an example 22% rate, the federal tax is about $35,153, and a sum that large can push you into higher brackets. That puts IBR's cost near $175,366. RAP's first payment is lower, yet here it runs 28 yrs 6 mos and costs $284,932, with nothing left to forgive. If forgiveness is your plan, save for the tax and see a tax professional before that date.
If you are married or work in public service
Filing jointly counts both incomes. Two spouses earning $60,000 each have a $120,000 joint AGI, so RAP starts from $1,000 a month. Filing separately, one spouse's RAP payment is based on $60,000 and comes to $250. If both have eligible loans and you file jointly, your payment is reduced to your share of the couple's balance. With equal balances, that's $500. This calculator doesn't apply that split, and filing separately can raise your taxes, so check both ways with the income tax calculator.
Public Service Loan Forgiveness can end repayment after 10 years. It takes 120 qualifying payments and qualifying work. Income-driven plans count, Tiered Standard doesn't, and PSLF isn't taxed federally, though a state may tax it. This calculator doesn't model PSLF. As a guide, the first 120 RAP payments in the example above total $60,695, and any balance left then would be forgiven.
What this estimate misses, and where to get free help
- Parent PLUS loans. They can't use RAP, even consolidated. A Consolidation Loan made before July 1, 2026 that includes one may reach IBR, but only after at least one ICR payment before July 1, 2028. Ask your servicer, since this calculator doesn't show that path.
- Private loans. These federal plans don't apply to them at all.
- Default and hardship. Federal Student Aid says defaulted loans can't use an income-driven plan until they're rehabilitated or consolidated. If you can't pay, ask about deferment or forbearance, though interest can still build and those months may not count toward forgiveness.
Your federal servicer is free, and you never have to pay a company to apply for a plan. The Repayment Calculator on StudentAid.gov uses your actual loans and shows the plans you qualify for, so confirm your choice there before you switch.
Common questions
Is RAP better than IBR?
It depends on your income, and only older loans have the choice. For a single borrower, RAP is lower at $60,000 of AGI ($250 against $301) and higher at $75,000 ($438 against $426). RAP waives unpaid interest, while IBR offers forgiveness 5 to 10 years sooner.
Can I switch plans later?
Usually, yes. Loans made on or after July 1, 2026 can move between Tiered Standard and RAP at any time once in repayment. Older loans can generally change to any plan you qualify for. Consolidating creates a new loan, so check how it affects your payment count first.
How do I enter several loans with different rates?
Add the balances and use a rate weighted by balance. With $20,000 at 5.5% and $25,000 at 7%, enter $45,000 at 6.33%. Your StudentAid.gov dashboard lists each loan's balance and rate.
Should I refinance my federal loans to get a lower rate?
Run the numbers with care. Cutting the rate one point on $45,000 lowers the 10-year payment from $511 to $488. A private refinance also ends access to federal plans, including RAP and PSLF, because those apply only to federal loans.
Why might my servicer quote a different payment?
Your servicer uses your actual loan dates, types, and tax data, and sets income-driven payments for 12 months at a time. This calculator raises income once a year at the rate you enter and treats all your loans as one balance at one rate.
Sources
- Reimagining and Improving Student Education: Federal Student Loan Program Final Regulations (34 CFR 685.208, 685.209, 685.210) · U.S. Department of Education, Federal Register
- SAVE Plan Borrowers: FAQs About Choosing a Different Repayment Plan · Federal Student Aid
- Top FAQs About Income-Driven Repayment Plans · Federal Student Aid
- Repayment Assistance Plan information · Edfinancial, a federal loan servicer
- Poverty guidelines · U.S. Department of Health and Human Services
- Topic 424: 401(k) plans · Internal Revenue Service