There are a few different types of student loans. To pursue forgiveness and income-driven repayment plan options, borrowers need to have Direct student loans.
Here are the different types of loans:
| Direct Loans | PLUS Loans | Perkins Loans | FFEL Loans | Private Loans |
| Loan program after 2010 |
GRAD PLUS: Loans you take out during graduate/professional programs Parent PLUS: Loans in your name taken out on behalf of your child |
Loan program for low income undergrad and graduate students, program ended 2017 | Loan program before 2010 | Nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school |
| Includes Direct Consolidation Loans | Loans will be held by the school you attended | Includes FFEL Consolidation Loans | Direct loans that have been refinanced into a Private loan cannot be reverted back into Direct loans | |
| Eligible for programs like Income Driven Repayment Plans and Public Service Loan Forgiveness |
GRAD PLUS loans are eligible for federal programs Parent PLUS loans must be consolidated to be eligible for IDR (specifically the ICR plan) and PSLF |
Must be consolidated to be eligible for IDR and PSLF Eligible for Perkins Loan Cancellation |
Only eligible for IBR (IDR), must be consolidated a Direct Consolidation loan to be eligible for other IDR programs and PSLF | Not eligible for any federal repayment or forgiveness programs |
| Example: Direct Subsidized, Direct Unsubsidized, Direct Consolidation | Example: Direct Parent PLUS, FFEL Parent PLUS, GRAD PLUS | Example: Federal Perkins Loan | Example: FFEL Subsidized, FFEL Unsubsidized, FFEL Consolidated | Example: Wells Fargo, SoFi, Discover, local credit union |
Important Notes About New Repayment Plans (Effective July 1, 2026)
Two new repayment plans are available for Direct Loans made on or after July 1, 2026:
- Repayment Assistance Plan (RAP): A new income-driven repayment plan that qualifies for PSLF. Available to most Direct Loan borrowers, but not available to Parent PLUS borrowers or borrowers with ineligible loan types (unless consolidated before July 1, 2026).
- Tiered Standard Repayment Plan: A new fixed monthly payment plan. This plan does not qualify for PSLF. This is the only repayment option for new Parent PLUS borrowers (first loan on or after July 1, 2026).
The older SAVE (REPAYE) plan is no longer an eligible plan. The PAYE and ICR plans are being phased out and will sunset on July 1, 2028. If you are currently on PAYE or ICR, you will need to transition to another plan — such as RAP, IBR, Standard, Graduated, or Extended repayment — before July 1, 2028. Please note: IBR, Graduated, or Extended repayment plans are only available for borrowers with direct loans made before July 1, 2026.
IBR remains available, but only for borrowers with Direct Loans made before July 1, 2026.
Private loans are not eligible for any federal forgiveness or repayment plans.
You can read more about Perkins Loan Cancellation here: https://bysavi.zendesk.com/hc/en-us/articles/1500000523922-How-does-Perkins-Loan-Forgiveness-work