Guides

The new student loan rules, one question at a time

Each guide answers one question, quotes the official rule, and says when we last checked it.

New to RAP? Start with the complete guide to the Repayment Assistance Plan, then come back for the details.

How RAP calculates your monthly payment, step by stepchecked Oct 17, 2026RAP applies one percentage to your whole AGI, divides by 12 and subtracts $50 per dependent. The bands are fixed dollar amounts, so one extra dollar of income can raise the payment.
RAP vs IBR: how the two income-driven plans differchecked Oct 17, 2026IBR charges a share of income above 150% of the poverty line and forgives after 20 or 25 years. RAP charges a share of all income and forgives after 30. Who can use each, and where the numbers part ways.
The SAVE plan ended: your 90-day deadline and your optionschecked Oct 17, 2026A court order ended SAVE in March 2026. Servicers started sending 90-day notices on July 1, 2026. What the notice means, what happens if you do nothing, and which plans you can move to.
Borrowed on or after July 1, 2026? You have two plans, for all your loanschecked Oct 17, 2026One Direct Loan first paid out on or after July 1, 2026 limits every Direct Loan you have, old ones included, to RAP or the Tiered Standard Plan.
The Tiered Standard Plan explainedchecked Oct 17, 2026Fixed payments over 10, 15, 20 or 25 years, set by your total balance when you enter repayment. It is the default for newer loans, and its payments do not count for PSLF.
RAP's interest waiver: why your balance shouldn't growchecked Oct 17, 2026In months you pay on time and in full, RAP waives any interest your payment doesn't cover. What counts, what doesn't, and why paying extra can reduce it.
The RAP principal match: how the government helps cut your balancechecked Oct 17, 2026If your on-time payment lowers your principal by less than $50, the government adds the difference, up to the amount you paid. Here is the calculation.
How dependents lower your RAP paymentchecked Oct 17, 2026RAP subtracts $50 a month for each dependent claimed on your federal tax return. Who counts, who doesn't, and how it differs from IBR's family size.
Married? How filing jointly or separately changes RAP and IBRchecked Oct 17, 2026Filing jointly adds your spouse's income; if your spouse has federal loans too, the payment is split by each person's share of the debt. Filing separately counts only your income.
PSLF and the new plans: what counts and what doesn'tchecked Oct 17, 2026On-time RAP payments count toward Public Service Loan Forgiveness. Tiered Standard payments do not. What changed for PSLF in 2026.
RAP forgiveness after 30 years, and the tax questionchecked Oct 17, 2026RAP forgives what is left after 360 qualifying payments over at least 30 years. What counts as a qualifying payment, and why forgiveness may be taxable.
IBR after the 2025 law: what changed and who can still use itchecked Oct 17, 2026IBR no longer requires a partial financial hardship. It stays open for loans paid out before July 1, 2026, and becomes the fallback for some ICR and PAYE borrowers in 2028.
New federal loan limits from July 1, 2026checked Oct 17, 2026Grad PLUS ends for new borrowers. Graduate students can borrow $20,500 a year, professional students $50,000, parents $20,000 a year per student. The full table.
Already in school? The exception that keeps the old loan limitschecked Oct 17, 2026Students enrolled on June 30, 2026 who had already borrowed for their program can keep the old limits, including Grad PLUS, for up to three more academic years.
Parent PLUS loans under the new ruleschecked Oct 17, 2026Parent PLUS loans can't use RAP. New ones are capped at $20,000 a year and must be repaid on Tiered Standard. Consolidation loans made before July 1, 2026 keep a path to IBR through ICR; consolidating now leads only to Tiered Standard.
When your first payment is due, and the key dates through 2028checked Oct 17, 2026Six months of grace after you leave school, a first bill within 60 days of entering repayment, and the dates the new rules switch on.
Deferment and forbearance changes for loans made from July 1, 2027checked Oct 17, 2026Loans made on or after July 1, 2027 can't use unemployment or economic hardship deferment, and forbearance is capped at 9 months in any 24.
The 1% auto pay interest rate cut: who gets it and until whenchecked Oct 17, 2026Borrowers enrolled in auto pay by Dec. 31, 2026 get a 1 percentage point interest rate reduction through June 30, 2028. The details.
FFEL and Perkins loans: getting into RAP means consolidatingchecked Oct 17, 2026RAP and Tiered Standard are Direct Loan plans. FFEL and Perkins loans become eligible only after consolidation into a Direct Consolidation Loan, which counts as a new loan.
Recertifying RAP each year, and what happens if you don'tchecked Oct 17, 2026RAP recalculates your payment every year from IRS data if you consent. If the Department can't get your information, your payment jumps to the 10-year standard amount.
The student loan interest deduction for 2026, explainedchecked Oct 17, 2026Up to $2,500 of interest comes off your income. For 2026 it phases out between $85,000 and $100,000 of MAGI, or $175,000 and $205,000 on a joint return. Who qualifies and how the math works.
Form 1098-E: the student loan interest statementchecked Oct 17, 2026Your servicer sends Form 1098-E if you paid $600 or more of interest in the year. What it shows, what to do with several, and when you can deduct interest it doesn’t list.
Employer student loan help: up to $5,250 a year tax-free, now permanentchecked Oct 17, 2026The 2025 law made permanent the rule that employer payments on your student loans, up to $5,250 a year, aren’t taxable income. What that means for your interest deduction.
How federal student loan interest workschecked Oct 17, 2026Interest builds up every day on what you owe. How it is charged, when unpaid interest is added to your balance, and how each plan treats interest your payment does not cover.
Paying extra on federal student loans: what happens to the moneychecked Oct 17, 2026There is no prepayment penalty, but a big extra payment can push your next due date forward instead of shortening the loan. And on RAP, paying extra can cost you the interest waiver.
Refinancing federal student loans: what changeschecked Oct 17, 2026A private refinance can lower the rate, but the new loan is a private loan. Which federal features it does not carry, and why it cannot be reversed.
PSLF buyback: paying for months that didn’t countchecked Oct 17, 2026Months in certain deferments or forbearances while you worked in public service can be bought back toward the 120 payments. Who can do it, what it costs, and the RAP exception.
PSLF: which employers qualify, and what full time meanschecked Oct 17, 2026Government at any level, 501(c)(3) nonprofits and some other nonprofits qualify. Full time means an average of at least 30 hours a week. The details from the regulation.
Teacher Loan Forgiveness: up to $5,000 or $17,500checked Oct 17, 2026Five consecutive years of full-time teaching at a designated low-income school can bring forgiveness of up to $5,000, or $17,500 for some math, science and special-education teachers.
Student loan default: what it means and what happenschecked Oct 17, 2026A federal loan defaults after 270 days without payment. Then it moves to the Default Resolution Group, and wage garnishment and tax refund offset become possible. Where collections stand in 2026.
Getting out of student loan default: rehabilitation vs consolidationchecked Oct 17, 2026Rehabilitation takes nine payments and removes the default from your credit history. Consolidation is faster but the record stays. From July 2027 you can rehabilitate twice.
Your servicer helps for free: spotting student loan scamschecked Oct 17, 2026Applying for a repayment plan, consolidating or seeking forgiveness costs nothing through your servicer or StudentAid.gov. Signs a company is charging for what is free.