Federal student loan repayment is undergoing its biggest shift in decades. By 2026, the Saving on a Valuable Education (SAVE) plan will end, multiple income-driven repayment (IDR) plans will be phased out, and a new program—the Repayment Assistance Plan (RAP)—will become the primary IDR option.
For borrowers, this is the moment to pause, reassess, and optimize your approach. Whether your goal is to lower monthly payments, accelerate payoff, or protect progress toward Public Service Loan Forgiveness (PSLF), understanding these changes is essential.
What’s Changing in 2026?
Plans Ending for New Enrollments
Several current IDR plans will no longer accept new borrowers:
- SAVE Plan — Phasing out completely
- PAYE — Ending for new borrowers; fully phased out by July 2028
- Income-Contingent Repayment (ICR) — Ending for most borrowers, except for Parent PLUS borrowers who consolidate before July 1, 2026
- Modified IBR — Closing to new borrowers
The New Repayment Assistance Plan (RAP)
Available by July 2026
- RAP will become the primary income-driven option for future borrowers. Key features include:
- Eligibility based on income and number of dependents (if applicable)
- Payments based on a percentage of adjusted gross income (AGI)
- Interest relief during periods of reduced payments, preventing unpaid interest from ballooning
Updates to the Standard Repayment Plan
A new version of the Standard Plan will replace the traditional 10-year schedule for certain borrowers. It offers:
- Fixed monthly payments tied to loan balance
- Terms ranging from 10 to 25 years
- A predictable, straightforward structure
The original 10-year Standard Plan will continue for existing borrowers and remains PSLF qualifying for loans that are not consolidated.
Remaining Repayment Options After 2026
New borrowers or those with new disbursement will be able to choose from:
- Repayment Assistance Plan (RAP)
- New Standard Plan
Tax Filing Considerations for IDR
Your tax filing status directly affects your RAP (or IBR if applicable) payment:
- Married Filing Jointly: Both incomes count → usually higher payments
- Married Filing Separately: Only your income counts → may reduce payments but can reduce certain tax benefits
Your most recent tax return will determine your next year of IDR payments, so timing matters—especially near recertification.
PSLF Borrowers: What You Need to Know
If you’re working toward PSLF, choosing the right plan is critical. Several PSLF qualifying IDR plans will close to new enrollments in 2028, and borrowers must stay on a qualifying plan to continue earning credit.
- PSLF Qualifying Plans After 2026
- Income-Based Repayment (IBR) for borrowers with no new disbursements 7/1/2026 and beyond
- Existing IDR plans (until each is fully phased out)
- Standard 10-Year Plan (qualifying, though most borrowers won’t receive forgiveness under it)
Recommended Actions
- Confirm your current plan
- Understand your plan’s phaseout timeline
- Move to RAP if appropriate
- Recertify PSLF employment yearly
- Keep your own records of qualifying payments
Why Reevaluate Your Strategy Now
Reassessing your repayment plan in 2026 can help you:
- Lower monthly payments
- Reduce or eliminate interest buildup
- Stay on track for forgiveness
- Avoid being moved into a non PSLF qualifying plan
- Identify opportunities to pay down principal faster
With major plan transitions underway, proactive planning can save you time, money, and stress.
The Bottom Line: What to Do Next
As SAVE ends and RAP becomes the new standard, now is the time to get prepared.
Your next steps:
- Review your current repayment plan
- Compare RAP vs. remaining options
- Update income and household information
- Make tax filing decisions strategically
- Confirm PSLF qualifying status (if relevant)
- Time plan changes around recertification
- Consider expert guidance for a personalized strategy
Deadlines like July 2028 may seem far away, but early action helps prevent mistakes and ensures you stay on the right path. Stay up to date here for ongoing information.
