New tiered Standard plan
New - default for loans on/after July 1, 2026 · Fixed payment · not PSLF-eligible
New tiered Standard plan. Fixed level payments over a term that scales with your starting balance: under $25,000 = 10 years; $25,000-$49,999 = 15 years; $50,000-$99,999 = 20 years; $100,000+ = 25 years. Minimum payment $50/month (or the balance if smaller). No forgiveness - the loan is fully paid off over the fixed term. Payments do NOT count toward PSLF. General information, not advice.
Source: Federal Student Aid - OBBBA updates. Data as of June 2026.
General information, not financial or legal advice. Federal student loan rules are changing in 2025-2026 under the One Big Beautiful Bill Act - figures here are estimates from public sources and the final program rules are still being implemented. Always verify with your loan servicer and studentaid.gov. See our disclaimer.
How New Standard works
Formula. Fixed level payments over a term that scales with your starting balance: under $25,000 = 10 years; $25,000-$49,999 = 15 years; $50,000-$99,999 = 20 years; $100,000+ = 25 years. Minimum payment $50/month (or the balance if smaller).
Interest. Standard amortization - interest accrues on the balance and is paid as part of each fixed payment. No interest subsidy.
Forgiveness. No forgiveness - the loan is fully paid off over the fixed term. Payments do NOT count toward PSLF.
Availability. Default plan for borrowers whose first loan is on or after July 1, 2026. One of only two options (with RAP) for those new borrowers.
New Standard balance-to-term bands
The repayment term is set by your starting balance:
| Starting balance | Repayment term |
|---|---|
| Under $25,000 | 10 years |
| $25,000 - $49,999 | 15 years |
| $50,000 - $99,999 | 20 years |
| $100,000 and above | 25 years |
Source: Federal Student Aid (studentaid.gov), U.S. Dept of Education OBBBA fact sheet, Public Law 119-21. Data as of June 2026.
Minimum payment $50/month (or the balance if smaller).
Worked example
This is a fixed plan - the payment is sized to repay your balance over the term. Use the payoff calculator to estimate the monthly amount and total interest for your balance and rate.
Estimate only. Try the calculators with your own numbers.
Pros and cons
| Pros | Cons |
|---|---|
| Predictable fixed payment; lowest total interest of the long-term options for a given balance | Payments are not tied to income - can be unaffordable on a low salary |
| No income recertification, no paperwork after enrollment | Does NOT qualify for PSLF (must use RAP for public-service forgiveness) |
| Fully repaid - no taxable forgiveness event | Larger balances stretch to 25 years, raising total interest |
Eligibility
Direct Loan borrowers whose first loan is on or after July 1, 2026 (their default plan). Existing borrowers keep the classic 10-year Standard plan.
Frequently asked questions
Does New Standard count toward PSLF?
No. New tiered Standard plan does not count toward Public Service Loan Forgiveness. For PSLF you generally need an income-driven plan such as RAP or IBR.
When is loan forgiveness under New Standard?
No forgiveness - the loan is fully paid off over the fixed term. Payments do NOT count toward PSLF.
Who can use New Standard in 2026?
Direct Loan borrowers whose first loan is on or after July 1, 2026 (their default plan). Existing borrowers keep the classic 10-year Standard plan.
Compare with other plans
- Repayment Assistance Plan (RAP) · New - available July 1, 2026
- Income-Based Repayment (IBR) · Remains available (existing borrowers)
- Standard 10-year plan · Continues for existing borrowers
- Graduated repayment plan · Continues for existing borrowers
- Extended repayment plan · Continues for existing borrowers (balance over $30,000)
- SAVE plan (Saving on a Valuable Education) · Closing - vacated by the courts; ending
- Pay As You Earn (PAYE) · Closing - sunsets July 1, 2028
- Income-Contingent Repayment (ICR) · Closing - sunsets July 1, 2028
Sources & accuracy
Plan rules from Federal Student Aid - OBBBA updates and the U.S. Dept of Education. Data as of June 2026. The 2025-2026 rules are still being implemented - this is general information, not financial or legal advice. Verify with your loan servicer and studentaid.gov. See our methodology and disclaimer.
Last updated: 2026-06-22