Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure . Is your student loan repayment plan about to be eliminated? What borrowers should know. Kendall Little Senior Writer, Credit Cards Updated Wed, July 1, 2026 at 6:54 AM PDT 8 min read Repaying your student loans isn't just costly it can also be confusing. Both federal and private student loan borrowers have numerous repayment options with varying repayment periods and monthly payments. On top of that, many of the plans for federal loans are changing in 2026 , as updates from the One Big Beautiful Bill Act (OBBBA) are implemented starting in July. Drawn-out court battles can also impact student loan repayment, as happened with the doomed SAVE repayment plan . To help you navigate your student loan payments, here's a closer look at what repayment options are available for federal loans now, new repayment plans coming later this summer, and payment options for private student loan borrowers. Read more: 8 things student loan borrowers should consider before July 1 Current federal student loan repayment plans These are all the current student loan repayment options. If you have student loans that have already been disbursed, you're likely on one of the following plans: Fixed repayment plans These repayment plans are eligible for Direct Subsidized and Unsubsidized Loans and PLUS Loans for students and parents. Standard Repayment Plan: This is a 10-year repayment plan. Your loan details affect your monthly payment amount, which is a fixed payment that will ensure your loan is paid in full within 10 years. Graduated Repayment Plan: Under this plan, your monthly payments start lower (when your income is presumably lower as a recent grad) and grow over the repayment period. Payments typically increase every two years. You'll pay off the loan in full within 10 years. Extended Repayment Plan: Like the name implies, this repayment plan offers an extended 25-year payoff period. Monthly payments may be fixed or graduated to ensure you pay off the loan in full within the extended period. If you have Direct Loans, your balance must be at least $30,000 to qualify for the extended repayment plan. If all of your federal loans were disbursed before July 1, 2026, you'll still be eligible for the above repayment plans when the OBBBA changes take effect this year. If you have at least one federal loan first disbursed on or after July 1, 2026, you'll be required to repay all of your Direct Loans under either the Repayment Assistance Plan (RAP) or the Tiered Standard Plan, outlined below. Income-driven repayment (IDR) plans Income-based plans are available for Direct Subsidized and Unsubsidized Loan borrowers and Direct PLUS loans made to students. Parent PLUS Loans are generally not eligible, though there are some exceptions after consolidating. Income-Based Repayment (IBR): Monthly IBR payments are either 10% or 15% of your discretionary income (depending on when you received the...
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