Education Department to Launch Two New Student Loan Repayment Plans on July 1
The Education Department will introduce a tiered Standard repayment plan and a Repayment Assistance Plan for federal student loans starting July 1. The plans differ from existing options in repayment terms, payment calculations, and eligibility for forgiveness.
indianexpress.comThe Education Department will introduce two new repayment plans for federal student loans on July 1. One plan sets fixed monthly payments based solely on loan balance, interest rate, and repayment term. The second plan calculates payments as a percentage of a borrower's adjusted gross income.
Under the Tiered Standard plan, repayment terms range from 10 to 25 years depending on total loan balance. Balances under $25,000 receive a 10-year term. Payments under this plan do not adjust for income and do not qualify for Public Service Loan Forgiveness. Borrowers must repay the full balance by the end of the term.
The Repayment Assistance Plan bases monthly payments on a percentage of adjusted gross income. Borrowers earning $10,000 or less pay 1 percent of AGI. The plan allows no income exclusion and deducts only $50 per dependent child from monthly payments.
Non-PSLF borrowers must make payments for 30 years to qualify for forgiveness. Payments made under this plan count only toward forgiveness under this plan and do not transfer to other income-driven plans.
Key Facts
Story Timeline
2 events- May 29, 2026
Education Department announced two new repayment plans effective July 1.
1 source@Forbes - July 1, 2026
Tiered Standard and Repayment Assistance plans scheduled to launch.
1 source@Forbes
Potential Impact
- 01
Borrowers with balances over $100,000 will have 15 additional years to repay under the Tiered Standard plan.
- 02
Payments made under RAP will not count toward forgiveness under other income-driven repayment plans.
- 03
Some borrowers may face higher monthly payments under RAP than under existing income-driven plans.
Transparency Panel
Related Stories
The GuardianWHO Chief Visits DRC as Ebola Death Rate Reaches 30-50%
World Health Organization director-general Tedros Adhanom Ghebreyesus arrived in the Democratic Republic of the Congo to support containment of a new Ebola outbreak. The agency revised the death rate to 30-50% based on confirmed cases and recorded 10 confirmed and 223 suspected d…
westernjournal.comGreek National Charged in UK With Aiding Iran-Linked Intelligence Service
A 46-year-old Greek man living in Germany was charged under the UK National Security Act with assisting an intelligence service believed to be Iran by targeting a journalist at Iran International.
physicianonfire.comBilt Rewards reports $1 billion revenue target for 2026
Bilt Rewards CEO Ankur Jain said the company's flagship credit card accounts for less than 11 percent of revenue. The firm now processes more than $100 billion in annual housing spend across one in four U.S. apartment buildings.