# Federal Student Loan Repayment Plans

The *One Big Beautiful Bill Act* (*OBBBA*) made significant changes to the federal student aid programs. This page has been updated with the latest information. To learn more, visit [StudentAid.gov/bigupdates](/announcements-events/big-updates).

You can pick from repayment plans that base your monthly payment on your income or that give you a fixed monthly payment over a set repayment period.

### FAST FACTS

- You can pick from repayment plans that base your monthly payment on your income or plans that give you a fixed monthly payment.
- Repayment plans based on your income are a smart choice to lower your payment. The lower your income—or the larger your family size—the less you’ll pay each month.
- If you don’t pick a repayment plan and your loan was disbursed on or after July 1, 2026, your loan servicer will place you on the [Tiered Standard Plan](/announcements-events/big-updates/definitions/#tiered-standard) (a 10-year fixed payment repayment plan). This plan might result in a higher monthly payment for you.

## Compare Repayment Plans

Our Repayment Calculator is the best way to compare our different repayment plans. You can use the Repayment Calculator to find out which plans you’re eligible for and to see estimates for how much you would pay monthly and overall.

Seeking forgiveness under Public Service Loan Forgiveness (PSLF)? The [PSLF Program](/manage-loans/forgiveness-cancellation/public-service) forgives the remaining balance on your Direct Loans after you’ve satisfied the equivalent of 120 qualifying monthly payments (10 years) under an IDR plan while working full-time for an eligible employer.

## Fixed Payment Repayment Plans

The fixed payment repayment plans include the [Tiered Standard Plan](/announcements-events/big-updates/definitions/#tiered-standard) (if your loan was disbursed on or after July 1, 2026), the [Standard Repayment Plan](/manage-loans/repayment/plans/standard), the [Graduated Repayment Plan](/manage-loans/repayment/plans/graduated), and the [Extended Repayment Plan](/manage-loans/repayment/plans/extended). These plans base your monthly payment amount on how much you owe, your interest rate, and a fixed repayment time period. If you want to be placed on one of these plans, contact your loan servicer.

When you leave school, you will be automatically enrolled in the Tiered Standard Plan (unless you pick a different repayment plan).

| Fixed Plans | Eligibility | Monthly Payment Amount |
|---|---|---|
| Standard | These loan types are eligible: - Direct Subsidized and Unsubsidized Loans - Subsidized and Unsubsidized Federal Stafford Loans - All PLUS loans (Direct or FFEL) - All Consolidation Loans (Direct or FFEL) | Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans). |
| Tiered Standard | All Direct Loans | Payments are a fixed amount that ensures your loans are paid off within 10-25 years (depending on the amount borrowed). |
| Graduated | These loan types are eligible: - Direct Subsidized and Unsubsidized Loans - Subsidized and Unsubsidized Federal Stafford Loans - All PLUS loans (Direct or FFEL) - All Consolidation Loans (Direct or FFEL) | Payments are lower at first and then increase, usually every two years. Payment amounts are designed to ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans). |
| Extended | To qualify for this plan, you must have more than $30,000 in outstanding Direct Loans (if you're a Direct Loan borrower) or more than $30,000 in outstanding FFEL Program loans (if you're a FFEL borrower). These loan types are eligible: - Direct Subsidized and Unsubsidized Loans - Subsidized and Unsubsidized Federal Stafford Loans - All PLUS loans (Direct or FFEL) - All Consolidation Loans (Direct or FFEL) | Payments can be fixed or graduated and will ensure that your loans are paid off within 25 years. |

## Income-Driven Repayment (IDR) Plans

IDR plans base your monthly payment amount on how much money you make and your family size. If you have eligible loans taken out before July 1, 2026, you’re permitted to access the Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE) Plans on or after July 1, 2026. There will be no restriction on enrolling in the IBR, ICR, or PAYE Plans on or after July 1, 2026, unless you receive a disbursement on a new loan on or after July 1, 2026. Once you receive a first disbursement on a loan as of July 1, 2026, you will lose eligibility for the IBR, ICR, and PAYE plans. Eligible loans will have access to the Repayment Assistance Plan (RAP).

The *One Big Beautiful Bill Act* eliminates the ICR and PAYE plans entirely in the future. We will publish more information about the ICR Plan enrollment deadlines that borrowers with consolidated parent PLUS loans must meet before the ICR Plan is eliminated in order for them to continue to be able to access the IBR Plan. The IDR plans are:

- Income-Based Repayment (IBR) Plan
- Repayment Assistance Plan (RAP)
- Income-Contingent Repayment (ICR) Plan
- Pay As You Earn (PAYE) Repayment Plan

After satisfying a certain number of months of qualifying payments on an IDR plan, you can get the remaining balance of your loan(s) discharged.

Because payments are based on your income and family size, you must provide your loan servicer with updated income and family size information each year so that your servicer can recalculate your payment amount. This process is called recertification. You must recertify your plan even if there has been no change in your income or family size.

If you agree to the secure disclosure of your tax information, we and your loan servicer will automatically recertify your enrollment in IDR and adjust your monthly payment amount once a year. You’ll be notified when your payment is changing, and you’ll always be able to recertify your plan manually.

### Apply Faster with Federal Tax Information

If you have eligible loans, applying for a new IDR plan is quick and easy if you provide consent for us to obtain your federal tax information directly from the IRS. This allows us to process your application faster and eliminates the time-consuming work of manually uploading your income information.

By providing consent for us to access your federal tax information, we can automatically recertify your IDR plan each year.

| IDR Plans | Eligibility | Monthly Payment Amount |
|---|---|---|
| RAP | These loan types are eligible: - Direct Subsidized Loans - Direct Unsubsidized Loans - Direct PLUS Loans for graduate or professional students - Direct Consolidation Loans that don’t include a Direct PLUS loan for parents | A [percentage of your annual income](/announcements-events/big-updates/definitions#rap) (most commonly your adjusted gross income, or AGI), divided by 12. The amount can change depending on the number of dependents, or if you're married and you file a joint income tax return. |
| IBR Plan | These loan types are eligible: - Direct Subsidized and Unsubsidized Loans - Subsidized and Unsubsidized Federal Stafford Loans - Direct and FFEL PLUS Loans made to students - Direct or FFEL Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents - Direct Consolidation Loans that include PLUS loans made to parents if the consolidation loans were disbursed no later than June 30, 2026, and if at least one payment was made under the ICR Plan between July 4, 2025, and July 1, 2028. To be eligible for this plan, you must not have received any new loan, including a new consolidation loan, on or after July 1, 2026. | Either 10% or 15% of your discretionary income (depending on when you received your first loans) but never more than what you would pay under the 10-year Standard Repayment Plan |
| ICR Plan | These loan types are eligible: - Direct Subsidized and Unsubsidized Loans - Direct PLUS Loans made to students - Direct Consolidation Loans (including those that repaid parent PLUS loans) To be eligible for this plan, you must not have received any new loan, including a new consolidation loan, on or after July 1, 2026. | The lesser of - 20% of your discretionary income, or - the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income |
| PAYE Plan | These loan types are eligible: - Direct Subsidized and Unsubsidized Loans - Direct PLUS Loans made to students - Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents To be eligible, you must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You must not have received any new loan, including a new consolidation loan, on or after July 1, 2026. | 10% of discretionary income but never more than what you would pay under the 10-year Standard Repayment Plan |

## Repaying Federal Perkins Loans

Perkins Loan repayment plan options are not the same as those for Direct Loan Program or FFEL Program loans. Check with your school for more information on Perkins Loan repayment plans.

## Consolidating Your Loans

If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan. This might simplify repayment if you are currently making separate loan payments to different loan holders or servicers, since you'll only have one monthly payment to make. Additionally, a Direct Consolidation Loan could be eligible for more beneficial repayment plans than your current loans are eligible for.

There might be tradeoffs, however, so you'll want to learn about the advantages and possible disadvantages of loan consolidation before you consolidate.