Currently, there are three Income-Driven Repayment Plans borrowers can enroll into:
| PAYE | 20 years | 10% of discretionary income, but no more than 10 year standard repayment amount | Due to the recent Reconciliation Bill, this plan is no longer an option for borrowers. | If payment doesn't cover all interest, interest will accrue. |
| IBR | 20 - 25 years | 10 - 15% of your discretionary income, but no more than the 10-year standard repayment amount depending on your eligibility | Any borrower with Direct Loans disbursed before July 1, 2026, whose monthly payment would be less than the 10-year standard repayment. Borrowers with loans disbursed after July 1, 2026 would not be eligible for this plan. | If payment is less than interest that accrues, interest will be capitalized if you no longer qualify to make payments based on income, or if you leave plan. |
| ICR | 25 years | The lesser of the following: 20% of your discretionary income, or what you would pay on a 12 year fixed repayment plan | Due to the recent Reconciliation Bill, this plan is no longer an option for borrowers. | If payment doesn't cover all interest, interest will accrue. |
With the passage of the One Big Beautiful Bill, beginning in July of 2028 there will be two Income-Driven Repayment plans offered currently. This chart breaks down each plan:
| Plan | Repayment Period | Monthly Payment Amount | Eligibility | Interest |
|---|---|---|---|---|
| RAP | 30 years | 1-10% of your discretionary income, depending on income level | Any borrower with Direct Loans (excludes Parent PLUS Loans) | If payment doesn't cover the accrued interest, the unpaid interest would be waived. The Department also matches your principal payments dollar-for-dollar, up to $50/month. |
| IBR | 20 - 25 years | 10% - 15% of your discretionary income, but no more than the 10-year standard repayment amount | Borrowers with Direct Loans made before July 1, 2026 only. 2014 IBR is limited to loans made between July 1, 2014 and July 1, 2026. Not available for new loans made on or after July 1, 2026. | If payment is less than interest that accrues, interest will be capitalized if you no longer qualify to make payments based on income, or if you leave plan. |
Key things to know
- New loans made on or after July 1, 2026 can only be placed on RAP or Tiered Standard. PAYE, IBR, and ICR are not available for these loans.
- Borrowers can switch between RAP and Tiered Standard after entering repayment.
- Parent PLUS borrowers with their first loan on or after July 1, 2026 are only eligible for Tiered Standard — no income-driven plans are available to them.
- RAP is the default plan for new Direct Loan borrowers on or after July 1, 2026 (along with Tiered Standard), if no plan is selected.
- Tiered Standard is the default for new Parent PLUS borrowers.
Choosing the right repayment plan can be complicated, especially with these changes. Savi will compare all your options to help you enroll in the plan that gives you the most savings. Complete your Savi General Information Application to explore your eligibility and find the best option for your situation.