This information applies to you if you're currently repaying your student loans or are in deferment/forbearance. Information on this page is subject to change as further federal regulations and guidance are issued throughout the 2025-2026 academic year.
Available repayment plan options are changing. Current SAVE and PAYE repayment plans are being eliminated. Contact your student loan servicer for assistance answering repayment questions and deciding which repayment plan will best suit your needs.
Available Repayment Plan 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 | RAP or IBR |
| ICR | June 30, 2028 | RAP or IBR |
| IBR | No deadline | Remain in IBR or transition to RAP |
| Standard | No deadline | Remain in current plan or new Standard Plan (repayment term determined by total debt) |
| Graduated | No deadline | Remain in current plan or new New Standard Plan (repayment term determined by total debt) |
| Extended | No deadline | Remain in current plan or new Standard Plan (repayment term determined by total debt) |
Detailed information regarding plan transitions, payment count transfers, and RAP payment calculations to come as the Department of Education finalizes the related rules and regulations. Contact your student loan servicer for details. Final guidance is expected to be released in late Spring 2026.
Parent PLUS Loan Changes
Parent PLUS loans taken after July 1, 2026
- 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 the prior loan limit exception, while new loan limits would apply to a younger sibling in the same academic year
- Access to income-driven repayment (IDR) plans was lost
- Existing Parent PLUS borrowers may lose progress toward PSLF if they borrow a new loan post July 1, 2026
Parent PLUS loans taken prior to July 1, 2026
- Parent Borrowers must use the Standard Repayment Plan (no early repayment penalty)
- May not use RAP
- May consolidate to access ICR, but must transition out of ICR by June 30, 2028
Public Service Loan Forgiveness (PSLF) Updates
Current PSLF requirements continue until further notice. The Department of Education will clarify which new plans qualify for PSLF and how payment counts transfer.
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 qualified payments
- Submit Employment Certification Forms annually
- Monitor guidance on qualifying plans
- Plan for transition before deadlines
Updated Tax Benefits
- Employer-Provided Educational Assistance (Section 127): Up to $5,250 annually, tax-free, that can be used for student loan repayment or tuition. Check if your employer offers this benefit
- Student loan interest deduction up to $2,500 (income limits apply)
- Loan discharge on death/disability: Not taxable income (made permanent)
Borrower Defense and Closed School Discharge
- The Department of Education will issue new regulations governing borrower defense claims and closed school charges, tentatively in late Spring 2026
- Biden-era regulations delayed and modified