On July 1, 2026, new rules went into effect and made major changes to many borrowers’ student loan repayment options. Watch this short webinar below on what you need to know about the new repayment changes (run time: 15 minutes).
This webinar is brought to you by NCLC and the International Rescue Committee in Sacramento, with support from the California Department of Financial Protection and Innovation.
What Has Changed?
On July 1, 2026, two new repayment plans became available: the Repayment Assistance Plan (RAP) and the Tiered Standard Plan. Not everyone is eligible for these new repayment plans.
There are now two different repayment tracks for borrowers. If you only have loans from before July 1, 2026, you may be eligible for more repayment options, including older IDR plans, such as IBR. However, if you take out new loans or consolidate your loans after July 1, 2026, you will only be able to use the RAP and Tiered Standard Plans to repay Direct Loans you took out for your own education. If you have Parent PLUS loans and you borrow or consolidate after July 1, 2026, your repayment options on those loans are even more limited. Consider your options carefully before consolidating or taking out new loans!
How are Parent PLUS Loans impacted? Options for Parent PLUS Loans have changed significantly and depend on whether or not you consolidated your loans or took out any new loans before or after July 1, 2026.
- Did you consolidate your Parent PLUS Loans before July 1, 2026? They may still be eligible for an IDR plan, but you must apply for and make one payment in the Income-Contingent Repayment (ICR) plan before July 1, 2028. After you make one payment in ICR, you can then switch to IBR.
- If you didn’t consolidate before July 1, 2026, and didn’t take out any loans after that date, IDR is no longer available for your Parent PLUS Loans, but you may be eligible for the older fixed plans, including the Standard or Extended plan.
- Did you consolidate or take out any new loans after July 1, 2026? Your Parent PLUS Loans, including consolidated Parent PLUS Loans, are only eligible for the Tiered Standard Plan.
Older repayment plans are being phased out: The SAVE plan is ending now, and the ICR and PAYE plans will end by July 1, 2028.
But the IBR plan will continue to be available for many borrowers. Borrowers who only have loans from before July 1, 2026, will still be able to use IBR for their Direct Loans, and FFEL Loans will continue to be eligible for IBR.
New borrowing limits: There are also new borrowing limitations for both student and parent borrowers, and the GRAD Plus loan program is ending. This means it may be harder to pay for school in the future.
Check Your Repayment Options:
- Log in to your account on StudentAid.gov and check which repayment plan you’re currently enrolled in.
- Use the Repayment Calculator to compare plans side-by-side using your imported tax data or recent paystubs. There may be a number of different repayment plans available to you.
- Want to change plans? You can apply for a new Income-Driven Repayment (IDR) Plan online or via a paper application. To sign up for other repayment plans, contact your loan servicer. Note: The new IDR paper application that allows you to enroll in the RAP plan was just released today, October 1, 2026.Some borrowers have been experiencing problems when trying to enroll in RAP using the online IDR application and may need to use the paper application instead. We are not sure when the online application errors will be fixed. Contact your servicer if you need help.
- Struggling to pay? Contact your loan servicer immediately to explore other repayment options or request temporary forbearance or deferment to keep your account in good standing.
