Federal student loan repayment plans after July 2026
How RAP, Tiered Standard and the older repayment plans fit together, and which loan details matter when comparing monthly payments and total costs.
By Clevara LLC · Published · Federal rules last reviewed
What changed in July 2026?
The federal repayment menu now includes the Repayment Assistance Plan (RAP) and Tiered Standard. RAP uses income and dependents; Tiered Standard uses the loan balance and interest rate, with repayment terms that vary by balance. A plan name alone does not establish whether a particular loan can use it.
The Department of Education’s 2026 RISE rule introduced these plans and set a transition away from PAYE and ICR by July 2028. Loan type, disbursement dates and prior enrollment still matter. This guide describes the general framework; it does not determine an individual borrower’s options.
Why do loan dates and types matter?
The fixed-payment regulation distinguishes borrowers who received a new Direct Loan on or after July 1, 2026 from those who did not. The income-driven rules separately limit which loans can use each plan. Parent PLUS, consolidation and FFEL loans have additional conditions; treating every federal loan as interchangeable can produce a misleading comparison.
After new Direct borrowing, the Direct Loan menu is generally Tiered Standard and RAP, subject to each plan’s loan-type rules. Parent PLUS debt excluded from RAP requires separate repayment; that separation does not reopen every legacy Direct plan. Existing FFEL and Perkins loans retain their separate program rules. The Department and loan servicer confirm the actual enrollment menu.
Read about Parent PLUS and consolidation →What belongs in a useful comparison?
Read the monthly amount alongside the repayment term, projected total paid, interest and any modeled balance remaining. A smaller first payment can coexist with a larger lifetime cost. Graduated payments change over time, so the first payment is only one stage of the schedule.
An income-driven projection also needs an income assumption. Holding today’s income constant for decades is a scenario, not a prediction. Actual income, household changes, prior payments and servicing decisions can change the result.
Where can I compare plans for free?
StudentAid.gov provides the Department of Education’s free Repayment Calculator. Its signed-in experience can use the federal loan records it holds. Clevara’s sample demonstrates the separate report format, including its assumptions and limitations.
Open the federal Repayment Calculator →Sources
Related
Clevara compares modeled repayment amounts and program criteria using a loan file and questionnaire answers. The sample shows the report and its limitations using illustrative data.
See a sample report →