What happened to the SAVE student loan repayment plan?

The SAVE plan has been blocked by a federal court order and is no longer available for new enrollment. Borrowers previously enrolled in SAVE have generally been moved into forbearance or directed to switch to another repayment plan.

What is the Repayment Assistance Plan (RAP)?

RAP is a new income-driven repayment plan that launched July 1, 2026, replacing SAVE as the government's primary income-driven option going forward. It ties monthly payments to income and includes a path to eventual loan forgiveness after a set number of qualifying payments.

What is the new Tiered Standard Repayment Plan?

The Tiered Standard Plan, also launched July 1, 2026, adjusts the standard repayment term based on how much you borrowed, rather than using a single fixed 10-year term for everyone. Borrowers with smaller balances get shorter terms; those with larger balances get longer terms.

Is Income-Based Repayment (IBR) still available in 2026?

Yes. IBR is the only legacy income-driven repayment plan still open to both new and existing borrowers in 2026, since SAVE, PAYE, and ICR have been phased out or blocked for new enrollment.

Which student loan repayment plan should I choose in 2026?

It depends on your income relative to your balance and whether you're pursuing loan forgiveness. IBR or RAP generally make sense if your payment under the standard plan would be unaffordable relative to your income; the Tiered Standard Plan or traditional Standard Plan make sense if you can afford the payment and want to minimize total interest.

Student Loan Repayment Plans 2026: What Changed

SAVE is blocked, two new plans launched July 1, 2026, and IBR is the only legacy income-driven plan still standing. Here's what it means for your payment.

Federal student loan repayment options shifted significantly heading into 2026. If you enrolled in SAVE, or haven't checked your repayment plan in a while, the options available to you today are meaningfully different than they were even a year ago.

What happened to the SAVE plan

The SAVE (Saving on a Valuable Education) plan was blocked by a federal court order and is no longer open for new enrollment. Borrowers who were already enrolled in SAVE have generally been placed into an interest-free forbearance while the Department of Education sorts out next steps, or have been encouraged to voluntarily switch to a currently available plan. If you were counting on SAVE for a lower payment or a forgiveness timeline, you'll need to re-evaluate under one of the plans below.

The two new plans that launched July 1, 2026

Plan	How it works	Best for
Repayment Assistance Plan (RAP)	New income-driven plan; payment scales with income, with forgiveness after a set number of qualifying payments	Borrowers whose income-based payment would be far below the standard plan amount
Tiered Standard Repayment Plan	Repayment term length varies by how much you borrowed, instead of a flat 10 years for everyone	Borrowers who can afford payments and want to minimize total interest without an income-driven plan

RAP effectively replaces SAVE as the government's primary income-driven repayment option going forward, though its exact payment formula and forgiveness timeline differ from SAVE's — don't assume your old SAVE estimate still applies. The Tiered Standard Plan is a change to the non-income-driven default: instead of everyone getting a 10-year term, your standard repayment term now scales with your original loan balance, which changes your fixed monthly payment even if you never touch an income-driven plan.

Is IBR still available?

Yes — Income-Based Repayment (IBR) is currently the only legacy income-driven repayment plan still open to both new and existing borrowers in 2026. PAYE and ICR have been phased out for new enrollment, and SAVE is blocked entirely, which leaves IBR as the established fallback for borrowers who need an income-driven option and don't want to enroll in the newer RAP plan.

Not sure what your actual monthly payment would look like under a different plan or term length? Run your balance and rate through the Student Loan Calculator to compare payoff timelines side by side.

How to choose between them

If your income is low relative to your balance, IBR or RAP will likely produce a lower monthly payment than either standard plan, at the cost of a longer repayment timeline and more total interest.
If you're pursuing Public Service Loan Forgiveness, confirm which plans currently qualify — this has been a moving target through the SAVE litigation, and enrolling in a non-qualifying plan can cost you credit toward forgiveness.
If you can comfortably afford the standard payment, the Tiered Standard Plan or a shorter voluntary term will minimize total interest paid over the life of the loan.
If you were on SAVE and placed in forbearance, interest may or may not be accruing depending on your loan type — confirm your current status directly with your loan servicer rather than assuming it matches your last statement.

What to do if you're not sure where you stand

Because these changes rolled out through litigation and mid-year plan launches, servicer communication has been inconsistent for a lot of borrowers. The most reliable path is checking your account directly at studentaid.gov, which reflects your current plan enrollment and forbearance status, rather than relying on an old email or your last billing statement.

This article is general information, not financial or legal advice. Federal student loan rules are changing rapidly in 2026 — confirm your specific plan status and options at studentaid.gov or with your loan servicer.