Student Loan Changes 2026: The New RAP Repayment Plan Explained

[Zeya Sanchez]

A New Repayment Plan Is Reshaping US Student Loans. Here Is What Changed.

Since 1 July 2026, US federal student loan borrowers have a new Repayment Assistance Plan that sets payments at 1% to 10% of income, with forgiveness after 30 years. SAVE is ending, new loans are limited to RAP, and SAVE borrowers get 90 days to choose a new plan once notified.

New repayment rules affect both current borrowers and students taking out loans from July 2026. Photo: McElspeth, via Wikimedia Commons (CC0)

By the UISC BD Editorial Desk · United Information Service Center · Published 13 September 2026 · 5-minute read

This article is general information, not financial or legal advice. Check your own options with your loan servicer or StudentAid.gov.

Two Tracks From 1 July 2026

If all your loans were taken out before 1 July 2026: you keep most existing repayment options for now, and you can also choose the new RAP plan.

If you take out a new federal loan on or after 1 July 2026: you lose access to the older income-driven plans and are limited to RAP — even if you are an existing borrower.

How RAP Works

• Payments are set at 1 to 10 percent of adjusted gross income.
• Borrowers with income under $10,000 a year pay a flat $10 a month.
• Any remaining balance can be forgiven after 30 years.
• RAP qualifies for Public Service Loan Forgiveness.
• RAP is not available for Parent PLUS loans, or consolidation loans that include Parent PLUS debt.

What Is Ending

SAVE — the Saving on a Valuable Education plan — is being eliminated. Borrowers enrolled in SAVE receive notices from their servicer and have 90 days to choose a different plan.

PAYE and ICR plans are scheduled to end in July 2028.

What to Do Now

1. Watch for your servicer's notice if you are in SAVE, and note the 90-day deadline.
2. Log in to your federal loan account and use the official loan simulator to compare payments under each plan you qualify for.
3. Compare total cost, not just monthly payment. A lower payment over a longer period can mean paying more overall.
4. Working in public service? Confirm your plan and employment count toward PSLF.
5. Think before taking new federal loans if keeping access to older plans matters to you.
6. Ignore companies charging fees to switch plans. Changing repayment plans through official channels is free.

Where to Get Free Help

Your loan servicer, your school's financial aid office and non-profit borrower assistance organisations can explain your options without charge.

For the bigger money picture, see where to earn more on savings and the fastest-growing jobs in 2026.

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Sources

• "What do the student loan changes on July 1, 2026 mean for me?," Student Loan Borrower Assistance — studentloanborrowerassistance.org
• "Major July changes to federal student loan repayment," National Consumer Law Center — library.nclc.org
• "Student loan changes coming July 2026: what borrowers need to know," Edelman Financial Engines — edelmanfinancialengines.com
• "Key changes in federal student loan repayment," NYC Department of Consumer and Worker Protection — nyc.gov