Standard Repayment Plan for Student Loans: Your 2026 Guide

The Standard Repayment Plan (SRP) is the default payment plan for federal student loans. Your lender automatically enrolls you if you don’t choose another plan within 45 days of leaving school.

Under the current system, you make 120 equal monthly payments over 10 years. Your payments stay fixed for the entire repayment term. They’re based on your total loan balance, not your income.

But major changes are coming. Starting July 1, 2026, the Standard Repayment Plan will work differently.

Major Changes Coming July 1, 2026

The 10-year standard has remained unchanged for decades. Now the government is overhauling how federal student loan repayment works.

Balance-Based Repayment Terms

Your repayment term will depend on your total loan balance. Larger balances get longer repayment periods.

• Up to $24,999: 10 years (120 payments)
• $25,000-$49,999: 15 years (180 payments)
• $50,000-$99,999: 20 years (240 payments)
• $100,000 or more: 25 years (300 payments)

Fewer Repayment Options

New borrowers after July 1, 2026 will only have two choices. You can pick the new Standard Plan or the Repayment Assistance Plan (RAP).

RAP is an income-based plan that will replace all current income-driven options.

Income-Driven Plans Are Being Phased Out

Current income-driven repayment plans face elimination by July 1, 2028. SAVE, PAYE, IBR, and ICR will all disappear. Borrowers with existing loans can stay on these plans until the phase-out date.

What These Changes Mean for You

You can keep your current 10-year Standard Repayment Plan if you already have federal loans. Borrowers who take out loans after July 2026 may face repayment terms longer than 10 years.

Anyone relying on income-driven repayment should prepare for the transition to RAP.

Which Federal Student Loans Qualify

All Direct Loan Program and Federal Family Education Loan (FFEL) Program loans qualify for the Standard Repayment Plan.

Eligible loan types include:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct PLUS Loans
• Direct Consolidation Loans
• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans
• FFEL PLUS Loans
• FFEL Consolidation Loans

Understanding Federal Student Loan Types

Most federal student loans fall into three main categories. Each type has different eligibility rules and interest structures.

Direct Unsubsidized Loans

All students qualify for these loans regardless of financial need. Undergraduate, graduate, and professional students can borrow unsubsidized loans.

Interest accrues while you’re in school. You don’t have to make payments during school or the six-month grace period after leaving.

Direct Subsidized Loans

Only students with demonstrated financial need qualify. The Department of Education pays your interest while you’re in school, during grace periods, and during approved deferment periods.

Direct PLUS Loans

Parents, graduate students, and professional students can take out PLUS loans. These loans carry higher interest rates than other federal student loans.

How Monthly Payments Work

The Standard Repayment Plan divides your total debt into 120 fixed monthly payments. Each payment will be at least $50.

You can estimate your monthly payment using the Federal Student Aid Loan Simulator. The tool lets you compare payments under different federal repayment plans.

Alternative Federal Repayment Plans

You can switch from the Standard Repayment Plan anytime. Multiple options exist if you need lower monthly payments.

Income-Driven Repayment Plans

Income-driven repayment (IDR) plans calculate your payment based on income, discretionary income, and family size. Four income-based options currently exist:

• Income-Based Repayment (IBR)
• Income-Contingent Repayment (ICR)
• Pay As You Earn (PAYE)
• Saving on a Valuable Education (SAVE)

Repayment terms range from 20 to 25 years. You qualify for forgiveness of any remaining balance after completing your repayment term.

You must use an income-driven plan to qualify for Public Service Loan Forgiveness.

Important Update: SAVE, PAYE, and ICR will no longer accept new borrowers after July 1, 2026. All these plans face complete elimination by July 1, 2028. Enroll before the deadline if you want to keep one of these plans. RAP will replace most IDR plans.

Graduated and Extended Repayment Plans

The Graduated Repayment Plan starts with lower monthly payments. Your payments gradually increase over the 10-year term.

Extended repayment stretches your payments over 20 to 25 years. You can combine extended repayment with graduated payments or choose fixed payments. Any remaining balance qualifies for forgiveness at the end of your term.

Federal Student Loan Consolidation

A Direct Consolidation Loan combines multiple federal loans into one new loan. You use the new loan to pay off all existing loans.

Consolidation streamlines repayment into a single monthly payment. Your new loan features a weighted average interest rate from your consolidated loans.

Struggling With Student Loan Payments?

Over 40 million Americans carry student loan debt. Many struggle to make their monthly payments or see a path to becoming debt-free.

Start by contacting your loan servicer. They can explain all available repayment options and help you find the lowest possible monthly payment. Your servicer can also help you apply for deferment or forbearance to temporarily pause payments.

Some borrowers may qualify to discharge student loans through bankruptcy. Our partner Cambridge Credit Counseling can help you explore all your debt management options.

You deserve a manageable payment plan that fits your budget. Professional guidance can help you navigate complex repayment choices and find the right solution.