New Payment Plans for Student Loans

New Payment Plan for Student Loan

Under the One Big Beautiful Bill Act, a new Standard Repayment Plan became one of the two primary repayment options for new federal Direct Loans first disbursed on or after July 1, 2026. The other option is the new Repayment Assistance Plan (RAP), which is income-based.

Here is how the new Standard Repayment Plan works:

Total Federal Loan Balance Repayment Term

Less than $25,000 10 years

$25,000–$49,999 15 years

$50,000–$99,999 20 years

$100,000 or more 25 years

The payments are:

• Fixed (they do not change overtime)

• Designed to fully repay the loan by the end of the repayment period

• Generally, have a minimum payment of $50 per month unless the remaining balance is smaller.