Federal IDR Plans in 2026: IBR, PAYE, ICR, and RAP

Federal income-driven repayment changed materially in 2026. SAVE ended effective March 10, 2026, and the Repayment Assistance Plan (RAP) became available July 1, 2026. IBR remains available for eligible borrowers, while PAYE and ICR are legacy plans with transition rules and a scheduled 2028 sunset.

How the plans differ

IBR generally uses 10% of discretionary income for qualifying newer borrowers and 15% for other eligible borrowers, with applicable 20- or 25-year terms. PAYE generally uses 10% with a 20-year term, and ICR generally uses the lesser of 20% of discretionary income or an income-adjusted 12-year amount, with a 25-year term. PAYE and ICR availability now depends on the statutory transition.

RAP uses income-based payments from 1% to 10%, includes a $10 minimum payment, reduces the payment by $50 per dependent, and can discharge a remaining balance after 360 on-time monthly payments. Its interest-waiver and principal-matching benefits apply only when the borrower satisfies the plan's payment rules.

Eligibility depends on loan type and date

A borrower with a new Direct Loan or a new consolidation on or after July 1, 2026 may be limited to RAP or Tiered Standard for the affected Direct Loans. Tiered Standard is a fixed-payment plan, not IDR. Borrowers should use the federal repayment calculator and confirm the available plans for their exact loan history before changing plans.