After July 1, 2026, you lose access to several repayment plans — permanently. Here's what's happening and what you should do before it's too late.
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⚠️ Important: This tool is for general informational and educational purposes only. It is not financial, legal, or tax advice. Calculations are estimates. Always verify with StudentAid.gov and consult a qualified professional before making decisions.
Answer a few quick questions to see your personalized impact — and which plan might be best for you now.
What type of federal student loans do you have?
Not sure? Log in at StudentAid.gov → "My Aid" to check. Pick the closest match.
📘
Direct Subsidized
Gov't pays interest while in school
📙
Direct Unsubsidized
Interest accrues from day one
🎓
Grad PLUS
For graduate/professional students
👨👩🎓
Parent PLUS
Taken by parents for child's education
📜
FFEL / Perkins
Older federal loans (pre-2010)
🔗
Consolidation Loan
Combined multiple loans into one
What repayment plan are you on right now?
If you're not sure, your loan servicer can tell you. If you were on SAVE, pick that — we'll help.
Standard (10-year)
Fixed payments over 10 years
Graduated
Payments start low, increase every 2 years
Extended
Lower payments over 25 years
IBR
Income-Based Repayment (10-15% of income)
PAYE
Pay As You Earn (10% of income)
ICR
Income-Contingent (20% of income)
SAVE / REPAYE
Currently blocked by courts
Not sure / Not repaying yet
In deferment, forbearance, or not sure
Tell us about your loan & income
We use this only to estimate — nothing is stored. Approximate numbers are fine!
1 person
Just me8+
If unsure, we'll estimate ~5.5%
Yes
No
You need 120 total (10 years).
0 of 120
0120
Step 2 of 5
What Changed — and Why It Matters
The One Big Beautiful Bill Act (signed July 2025) plus court rulings have completely reshaped student loan repayment.
🧠 Quick check: After July 1, 2026, how many repayment plan types are available for new loans?
Correct: Only 2 plans. If any loan is disbursed on or after July 1, 2026, ALL your loans (old and new) can only be in the new Repayment Assistance Plan (RAP) or the Tiered Standard Plan. The old plans — IBR, PAYE, ICR, Standard, Graduated, Extended — are gone for you.
Feature
Before (Pre-July 2026)
After (Post-July 2026)
Available Plans
Standard, Graduated, Extended, IBR, PAYE, ICR, SAVE
RAP + Tiered Standard only changed
SAVE Plan
Blocked by courts since 2024
Permanently eliminated gone
PAYE Plan
Available (10% income, 20-yr forgiveness)
Retired by July 2028 retiring
ICR Plan
Available (20% income, 25-yr forgiveness)
Retired by July 2028 retiring
IBR Plan
Required "partial financial hardship"
Now open to all borrowers expanded
Grad PLUS Loans
Available
Eliminated for new borrowers gone
Parent PLUS + IDR
Consolidate → ICR → IBR pathway
Must consolidate before July 2026 deadline
PSLF Qualifying Plans
IBR, PAYE, ICR, SAVE
RAP only (for new loans) changed
Lifetime Loan Cap
None
$257,500 total new
RAP = Repayment Assistance Plan. It's the new income-driven repayment plan replacing SAVE, PAYE, ICR.
Key things to know about RAP:
One of only two plans for loans disbursed after July 1, 2026. Payments under RAP can count toward PSLF. However, progress toward forgiveness under RAP does NOT transfer back to IBR/PAYE/ICR if you switch away later. Parent PLUS loans cannot use RAP.
Tiered Standard Plan is the new fixed-payment option. Think of it as the "default" if you don't pick RAP.
Important: Tiered Standard payments do NOT count toward PSLF. If you're pursuing Public Service Loan Forgiveness, you need RAP or an older IDR plan.
If ANY loan is disbursed on or after July 1, 2026, ALL your loans — including old ones — get locked into only RAP or Tiered Standard.
This means: If you take out a new loan, consolidate after the deadline, or receive any new disbursement — you permanently lose access to IBR, PAYE, ICR, and all old plans. Even for your existing loans.
Step 3 of 5
Your Action Checklist
Here's exactly what you should do before July 1, 2026 — in order of urgency. Tap each item as you complete it.
🚨 #1 Priority: Do NOT take out any new federal loan or consolidate AFTER July 1, 2026
unless you fully understand that doing so locks ALL your loans into only RAP or Tiered Standard. This is irreversible.
1. Log in to StudentAid.gov right now
Check your loan types, balances, current repayment plan, and servicer info.
2. If you were on SAVE: Choose a new plan immediately
SAVE is dead. If you don't pick a new plan, your servicer will — and it might not be the best for you.
3. If you have FFEL/Perkins loans: Consolidate BEFORE June 30
You need a Direct Consolidation Loan. After July 1, new consolidation = new loan = locked into RAP/Tiered Standard.
4. If you have Parent PLUS: Consolidate NOW and enroll in ICR
Parent PLUS → Consolidate → ICR → make 1 payment → switch to IBR. This pathway closes soon.
5. If pursuing PSLF: Confirm your qualifying plan
Make sure you're on IBR, PAYE, ICR, or RAP. Tiered Standard does NOT count toward PSLF.
6. Set up auto-pay
Get a 0.25% interest rate reduction AND never miss a payment.
7. Give consent for IRS data sharing
Lets your IDR plan auto-recertify yearly. Without it, miss a deadline and your payments spike.
💡 Pro Tip: The Department of Education says they're NOT experiencing consolidation delays right now — but they expect a rush before July 1, 2026. Don't wait.
Step 4 of 5
Can You Spot the Costly Mistakes?
People are already making expensive errors with these changes. Answer 6 real-world scenarios to see if you'd avoid the traps — and learn what to watch out for.
0/6
Answer all 6 to see your score
Each question reveals a real pitfall people are falling into right now.
1 You're on IBR and happy with it. Your kid starts college and you take out a small $5,000 Parent PLUS loan in August 2026. What happens to YOUR existing loans?
⚠️ Pitfall #1: Taking out ANY new loan after July 1 affects everything.
Even a $5,000 loan disbursed after the deadline forces ALL your existing loans out of IBR and into only RAP or Tiered Standard. There's no "grandfathering" for individual loans — it's all or nothing. This is the most dangerous trap because it seems harmless.
2 You have FFEL loans and want to consolidate them to access IBR. You submit your consolidation application on June 25, 2026. Are you safe?
⚠️ Pitfall #2: Waiting until the last minute to consolidate.
The deadline is about when the loan is disbursed, not when you apply. Processing takes time, and the Department of Education is warning about an expected surge. Apply at least 2–3 months early. If your consolidation is disbursed after July 1, it counts as a "new loan" and locks you into RAP/Tiered Standard.
3 You have Parent PLUS loans. You consolidate them before the deadline and enroll in IBR right away. Is that the correct path?
⚠️ Pitfall #3: Skipping the required ICR step for Parent PLUS.
Parent PLUS loans can't directly enroll in IBR. The path is: Consolidate → Enroll in ICR → Make at least 1 full payment on ICR → Then switch to IBR. If you skip the ICR payment, you're stuck. And ICR is being retired by July 2028, so this window is shrinking fast.
4 You're pursuing PSLF and you switch to the Tiered Standard Plan after July 1, 2026 because the payments are simpler. Do your monthly payments still count toward PSLF?
⚠️ Pitfall #4: Assuming all plans qualify for PSLF.
This is a costly mistake. The Tiered Standard Plan does NOT count toward PSLF or TEPSLF. If you're working toward loan forgiveness through public service, you must be on RAP (for new loans) or an older qualifying IDR plan like IBR, PAYE, or ICR. Every month on the wrong plan is a wasted month.
5 Your IDR plan gets you loan forgiveness in 2027. You owe $40,000 that gets forgiven. What's the tax impact?
⚠️ Pitfall #5: Forgetting about taxes on forgiven amounts.
The American Rescue Plan made student loan forgiveness tax-free from 2021–2025. But if your loans are forgiven after that window closes and you hadn't already hit your repayment milestone, the forgiven amount could count as taxable income. If $40,000 is forgiven and you're in the 22% tax bracket, that's roughly $8,800 you'd owe to the IRS. Plan ahead and save for this.
6 You're on an IDR plan. Life gets busy and you forget to recertify your income by the deadline. What happens?
⚠️ Pitfall #6: Not recertifying your IDR plan on time.
Missing your annual recertification deadline can cause your monthly payment to jump dramatically — to what you'd pay under the Standard 10-year plan. On IBR, unpaid interest also capitalizes (gets permanently added to your principal), meaning you'd then pay interest on a larger balance. Fix: Set up IRS data-sharing consent so your plan auto-recertifies each year.
📌 Bookmark these pitfalls:
Even if you got them all right, share this with someone who might not. These mistakes can cost thousands — or years of wasted payments.
Step 5 of 5
Help Someone You Know
43 million Americans have federal student loans. Chances are, someone you know needs to see this before July 1.
📢 Spread the Word
Most borrowers don't know about this deadline. A quick share could save someone thousands.