New OBBBA Repayment Options Start July 1, 2026
If you borrow a Direct Loan or Parent PLUS Loan on or after July 1, 2026, you will only have two repayment options:
Standard Plan: 10 to 25 years, depending on how much you borrowed.
Repayment Assistance Plan (RAP): An income-based plan that charges 1% to 10% of your Adjusted Gross Income (AGI), with forgiveness after 30 years.
NOTE: Once you begin using RAP, you cannot change back to the Standard Plan.
One Big Beautiful Bill Act
While the OBBBA ( One Big Beautiful Bill Act ) will introduce new borrowers to two simple repayment plans on July 1, 2026, current borrowers will have two years to migrate to the new payment plans. The deadline for moving to the new repayment plans is July 1, 2028, for existing borrowers. The two repayment options will be:
New Standard Repayment Plan — This is a fixed-payment plan with repayment spanning 10 – 25 years, depending on the amount borrowed. Borrowers on this repayment plan can qualify for loan forgiveness if their loan term is 15 years or more.
Repayment Assistant Program ( RAP ) — This plan takes into account Adjusted Gross Income (AGI) of the borrower and calculates payments at 1% – 10% of that figure. If the loan term is greater than 10 years and the borrower works in the public sector for an eligible employer, they will qualify for loan forgiveness.
Public Service Loan Forgiveness
Presidential Actions :
Restoring Public Service Loan Forgiveness
The White House
March 7, 2025
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1. Purpose. In 2007, the Congress established the Public Service Loan Forgiveness (PSLF) Program to encourage Americans to enter the public service sector by promising to forgive their remaining student loans after they completed 10 years of service in those jobs while making 10 years of minimum payments.
How to Qualify for Student Loan Forgiveness
Be employed by a U.S. federal, state, local, or tribal government or a qualifying not-for-profit organization.
Work full-time for that agency or organization.
Have Direct Loans – or consolidate federal loans into a Direct Consolidation Loan.
Repay loans under the Income-Driven or Standard Repayment plans. (NOTE: for new loans issued after July 1, 2026, only two forms of repayment will be available: Repayment Assistance Plan (RAP) and a Standard Repayment Plan. For loans issued before July 1, 2026, federal student aid borrowers will need to switch to one of the valid repayment plans before July 1, 2028, to continue to qualify for student loan forgiveness).
Make a total of 120 qualifying monthly loan payments.
Because 120 qualifying monthly loan payments are required, it is guaranteed that loan forgiveness will take at least 10 years. You can change employers as long as they are an eligible PSLF employer. For many borrowers, this time commitment is worth it.