If you have federal student loans, 2026 has brought some major changes to the way repayment works. Several older repayment options are being phased out, the SAVE Plan is no longer available, and two new repayment plans are now part of the federal student loan system.
For many borrowers, the biggest question is simple: Do I need to do anything right now?
The answer depends on your loans, when they were first disbursed, your current repayment plan, and whether you were enrolled in SAVE.
There is also a deadline worth knowing about right now. Borrowers with eligible federal Direct Loans who enroll in Auto Pay by September 30, 2026, can receive a temporary 1% interest-rate reduction through June 30, 2028.
Here is what borrowers should know about the student loan repayment changes taking effect in 2026 and continuing into 2027.
What Changed With Federal Student Loan Repayment?
The federal student loan repayment system changed significantly on July 1, 2026.
Two new repayment options became available:
- Repayment Assistance Plan (RAP), an income-driven repayment option
- Tiered Standard Repayment Plan, which uses fixed monthly payments over different repayment periods depending on the amount owed
At the same time, several older income-driven repayment plans are being phased out or have new eligibility restrictions.
Your available options depend heavily on when your federal loans were first disbursed and whether you have taken out additional federal loans since July 1, 2026.
That means two people with similar balances could have very different repayment choices.
The safest way to see your specific options is to log in to your account at StudentAid.gov and use the federal Repayment Calculator.
What Happened to the SAVE Plan?
The Saving on a Valuable Education, or SAVE, Plan is no longer available.
A court order ended the SAVE Plan on March 10, 2026. Borrowers who were enrolled in SAVE or had pending SAVE applications must move into another eligible repayment plan.
This transition is happening in stages because millions of borrowers were affected.
If you were enrolled in SAVE, you should receive a notice from your loan servicer explaining that you need to select a different repayment plan. For example, MOHELA says affected borrowers receive a notice giving them 90 days from the date of the notice to choose a new plan. Notices are being sent in waves.
Your deadline is therefore not necessarily the same as another borrower’s deadline.
Don’t assume your SAVE payment will simply continue
If you were placed in a SAVE-related forbearance, it is particularly important to check your account and watch for communications from your servicer.
You may be able to select a new plan before your notice deadline. Once a new plan is processed, your SAVE forbearance may end and your new repayment terms will take effect.
If you have not received a notice yet, that does not necessarily mean you can ignore the situation. Check your StudentAid.gov account and your loan servicer’s website for current information.
What Are the New Student Loan Repayment Options?
The two major new options are RAP and Tiered Standard Repayment.
Neither is automatically the right choice for every borrower. Your loan type, income, family situation and long-term repayment goals can all affect which plans are available.
Repayment Assistance Plan (RAP)
RAP is an income-driven repayment plan.
Instead of basing your payment primarily on how much you borrowed, RAP uses your adjusted gross income and the number of dependents you claim on your federal tax return.
The basic calculation uses a percentage of your adjusted gross income, with the percentage increasing as income increases. The percentage ranges from 1% to 10%. The calculated amount is divided by 12, and the monthly payment is reduced by $50 for each qualifying dependent. The payment cannot be less than $10 per month.
For example, the current RAP calculation uses these income ranges:
| Adjusted Gross Income | Base Payment Percentage |
|---|---|
| $10,000 or less | $120 annual base payment |
| $10,001–$20,000 | 1% |
| $20,001–$30,000 | 2% |
| $30,001–$40,000 | 3% |
| $40,001–$50,000 | 4% |
| $50,001–$60,000 | 5% |
| $60,001–$70,000 | 6% |
| $70,001–$80,000 | 7% |
| $80,001–$90,000 | 8% |
| $90,001–$100,000 | 9% |
| More than $100,000 | 10% |
The actual monthly amount can be lower after the dependent adjustment, and payments are recalculated each year using updated income and dependent information.
RAP also has provisions designed to prevent unpaid interest from continuing to increase the balance when borrowers make qualifying, on-time payments. It includes a principal-matching benefit as well.
RAP generally provides for discharge of a remaining balance after 30 years of qualifying payments, although different rules can apply in situations such as Public Service Loan Forgiveness.
Tiered Standard Repayment Plan
The Tiered Standard Plan works differently.
Instead of adjusting your payment based on your income, it uses a fixed monthly payment and gives borrowers different maximum repayment periods based on their outstanding principal balance.
The current repayment periods are:
- Less than $25,000: up to 10 years
- $25,000 to less than $50,000: up to 15 years
- $50,000 to less than $100,000: up to 20 years
- $100,000 or more: up to 25 years
The longer repayment periods are designed to spread larger balances over more years. That can result in a lower monthly payment than a traditional 10-year repayment schedule, although extending repayment can also mean paying interest for a longer period.
What About Income-Based Repayment, PAYE and ICR?
The transition is a little more complicated for borrowers who already have older federal loans.
Some borrowers with loans disbursed before July 1, 2026 may still have access to existing plans such as Income-Based Repayment (IBR), depending on their loan history and eligibility.
PAYE and ICR are being phased out under the new federal rules. Federal Student Aid says those plans will be retired no later than July 1, 2028, although specific deadlines and eligibility rules vary.
This is one reason it is risky to choose a repayment plan based solely on a list you find online. Your personal loan history matters.
Who Needs to Take Action?
You may need to review or change your repayment plan if:
- You were enrolled in the SAVE Plan.
- You received a notice telling you to select a new repayment plan.
- Your loan servicer has changed.
- You recently consolidated your federal loans.
- You took out a new federal student loan on or after July 1, 2026.
- Your income or family circumstances have changed significantly.
- Your current payment is becoming difficult to afford.
- You are considering an income-driven repayment option.
- You want to compare RAP with a fixed-payment plan.
- You are pursuing Public Service Loan Forgiveness and want to make sure your repayment plan remains eligible.
- You want to enroll in Auto Pay before the September 30, 2026 deadline.
If none of those situations apply, you may not need to make an immediate change. But it is still worth checking your account periodically as the new repayment system continues rolling out.
What Happens If You Do Nothing?
This is one of the most important questions for borrowers leaving SAVE.
If you receive a notice from your servicer requiring you to select a new plan and you do nothing, you may eventually be placed into a repayment plan automatically.
The exact plan can depend on when your loans were disbursed.
For example, MOHELA says borrowers who do not select a new plan within the required period may be automatically placed into either the Standard Repayment Plan or Tiered Standard Plan, depending on their loan disbursement dates.
That does not necessarily mean your loan disappears or that you stop owing money. It means the federal student loan system can place you into a different repayment structure.
If your income has changed or you were relying on an income-driven payment, an automatic transition could produce a monthly payment that is different from what you expected.
For that reason, don’t ignore a notice from your loan servicer.
How Are Student Loan Payments Calculated?
There is no single payment formula for every federal student loan borrower anymore.
Under a fixed repayment plan, your payment can depend on factors such as:
- Your loan balance
- Your interest rate
- Your repayment term
- The type of loan you have
Under an income-driven plan such as RAP, income and family information play a much larger role.
For RAP, the payment is based on adjusted gross income, the applicable percentage for that income level, and qualifying dependents. The calculation is updated periodically as your financial information changes.
This is why two borrowers with $40,000 in federal student loan debt could have very different monthly payments.
The federal government’s Repayment Calculator is designed to compare plans using your actual loan information.
What Borrowers Should Know About Auto Pay and Interest Rates
There is another deadline that is especially relevant as September 2026 comes to a close.
Beginning July 1, 2026, eligible federal Direct Loan borrowers enrolled in Auto Pay can receive a 1 percentage-point interest-rate reduction.
Borrowers who were already enrolled or enroll by 11:59 p.m. Eastern Time on September 30, 2026, can receive the temporary reduction through June 30, 2028, as long as they remain eligible and continue meeting the requirements.
The benefit is not available for every type of federal loan. Federal Student Aid says the additional reduction applies to eligible Direct Loans disbursed on or after July 1, 2012, while certain other federal loan types are excluded.
If you are considering Auto Pay, check the details with your loan servicer before assuming your loans qualify.
And remember that an interest-rate reduction does not change your loan’s principal balance by itself. It simply reduces the interest rate used under the applicable program.
Where Can You Check Your Student Loan Status?
The best starting point is your StudentAid.gov account.
Once logged in, you can review information about your federal loans, including your loan types, balances, servicer information and current repayment plan.
Federal Student Aid also provides a Repayment Calculator that can help borrowers compare available plans based on their individual circumstances.
You should also check your loan servicer’s website.
Your servicer handles things such as:
- Monthly billing
- Payment processing
- Repayment-plan applications
- Auto Pay
- Account questions
- Notices about changes to your repayment plan
If your federal loans have recently been transferred to a different servicer, don’t assume that everything will look exactly the same. Federal Student Aid says borrowers should receive advance notice when loans are transferred to a new servicer.
Questions to Ask Your Student Loan Servicer
If you’re not sure what happens next, you don’t need to walk into the conversation knowing all the terminology.
Start with a few basic questions:
- What repayment plan am I currently enrolled in?
- Was I affected by the end of the SAVE Plan?
- Do I need to choose a new repayment plan?
- What is my deadline for making a change?
- Which repayment plans are available for my specific loans?
- What would my estimated monthly payment be under each available plan?
- Is my loan eligible for RAP?
- Would changing plans affect my progress toward loan forgiveness or PSLF?
- Am I eligible for the current Auto Pay interest-rate reduction?
- Has anything changed about my loan servicer or account number?
It can also help to ask for information in writing if you are discussing a major repayment-plan change.
What Borrowers Should Do Before 2027
You don’t necessarily need to make a major change simply because the federal student loan system has changed.
But if you have federal student loans, this is a good time to log in and make sure you know exactly where you stand.
At a minimum, check:
- Your current loan balance
- Your loan types
- Your current repayment plan
- Your monthly payment
- Your loan servicer
- Whether you received a SAVE transition notice
- Your deadline, if you have been told to select a new plan
- Whether you are enrolled in Auto Pay
- Whether your loans qualify for the temporary 1% interest-rate reduction
- Whether your current plan still fits your income and long-term repayment goals
If you are considering a new repayment plan, use the federal Repayment Calculator rather than relying on a generic payment estimate.
And be careful with companies that promise to “fix” your federal student loans for a fee. Federal Student Aid warns that borrowers do not have to pay someone to access federal student loan assistance or repayment options.
Frequently Asked Questions
Is the SAVE Plan still available in 2026?
No. A court order ended the SAVE Plan on March 10, 2026. Borrowers who were enrolled in SAVE must transition to another eligible repayment plan after receiving instructions from their loan servicer.
What is the new student loan repayment plan for 2026?
There are two major new federal repayment options: the Repayment Assistance Plan (RAP) and the Tiered Standard Repayment Plan. RAP bases payments on income and dependents, while Tiered Standard uses fixed payments over a repayment period determined by the borrower’s outstanding principal balance.
When do I have to leave SAVE?
There is not one universal date for every borrower. Loan servicers are sending notices to affected borrowers, and the deadline can be based on the date your notice was sent. For example, MOHELA says affected borrowers have 90 days from the date of their notice to select a new repayment plan.
What happens if I don’t choose a new repayment plan?
Depending on your loan history, your servicer may automatically place you into a standard or Tiered Standard repayment plan. The specific plan can depend on when your loans were disbursed.
How much is a RAP payment?
RAP payments are based on adjusted gross income and dependents. The applicable percentage ranges from 1% to 10% of AGI, with the annual base amount divided by 12 and a $50 monthly reduction for each qualifying dependent. The minimum monthly payment is $10.
Can I still use Income-Based Repayment?
Some borrowers with eligible older federal loans may still qualify for IBR. Eligibility depends on the type and timing of your loans. Federal Student Aid recommends checking your individual loan information and available plans rather than assuming a plan is available based solely on your loan balance.
Is there still a student loan Auto Pay discount?
Yes. Eligible Direct Loan borrowers can receive a temporary 1 percentage-point interest-rate reduction if they enroll in Auto Pay by September 30, 2026, or were already enrolled. The benefit is currently scheduled to continue through June 30, 2028, subject to the program’s requirements.
Where should I check my repayment options?
Start with your account at StudentAid.gov and use the federal Repayment Calculator. You can then contact your loan servicer with questions about your specific account or repayment-plan options.
The Bottom Line
The federal student loan system is going through a major transition, but borrowers do not all face the same changes.
For someone who was never enrolled in SAVE, the changes may be relatively straightforward. For someone coming out of SAVE forbearance, the next steps may be more involved. And for borrowers taking out new federal loans in 2026 and beyond, the repayment options can look different from those available to borrowers with older loans.
The most useful thing you can do is check your actual account rather than relying on a general description of the new rules.
Log in to StudentAid.gov, review your current repayment plan and loan information, look for messages from your servicer, and compare the repayment options available to your specific loans.
For borrowers who are eligible for the temporary Auto Pay interest-rate reduction, September 30, 2026, is an important date to keep in mind.
As the transition continues into 2027, checking your account periodically can help you avoid missing a repayment-plan deadline or an important notice from your servicer.
