Tiered Standard or the Repayment Assistance Plan
| Plan | Monthly | How long | Interest | Total paid |
|---|
Your Repayment Assistance Plan payment works out at — a month, — in total.
RAP payments are worked out from your AGI, so they move with your income. The figures here assume the income you entered stays the same, which it will not. Treat them as a shape, not a forecast.
Federal student loans changed more between 2025 and 2026 than in the previous decade. Two plans are open to anyone borrowing from 1 July 2026: Tiered Standard and the Repayment Assistance Plan. SAVE has gone, and PAYE and ICR are closing. This calculator uses the plans that exist now.
What you borrow is not what you get
A loan fee comes off each disbursement: 1.057% on Direct Subsidized and Unsubsidized loans, 4.228% on PLUS loans, for loans disbursed between 1 October 2026 and 30 September 2027. Borrow $30,000 and about $29,683 reaches the school. You repay the full $30,000 with interest.
Interest while you study
Federal loans use daily simple interest: the balance multiplied by the rate, divided by the days in the year. On a subsidized loan the government pays that interest while you are in school at least half time, during the grace period and during most deferments. On an unsubsidized loan it is yours from the day the money is disbursed, and unpaid interest is added to the balance when repayment begins.
That capitalization is why a $30,000 unsubsidized loan can turn into nearly $39,000 before the first bill arrives. Paying even the interest while you study stops it. The calculator shows both numbers so you can see the gap.
Rates for 2026–27
- Direct Subsidized and Unsubsidized, undergraduate: 6.52%
- Direct Unsubsidized, graduate or professional: 8.07%
- Direct PLUS: 9.07%
These are fixed for the life of each loan and set once a year from the 10-year Treasury auction.
The autopay discount is unusually large right now
The Department of Education announced a 1 percentage point reduction, instead of the long-standing 0.25 point, for Direct Loans first disbursed after 1 July 2012, running from 1 July 2026 to 30 June 2028 for borrowers enrolled in automatic payments. On a $30,000 balance that is worth roughly $1,500 over a standard term. The toggle above switches it on and off.
Tiered Standard: the term depends on the balance
| Balance when repayment starts | Term |
|---|---|
| Under $25,000 | 10 years |
| $25,000 to $49,999 | 15 years |
| $50,000 to $99,999 | 20 years |
| $100,000 and above | 25 years |
The payment is worked out like any other amortizing loan, with a minimum of $50 a month. A longer term means a smaller payment and considerably more interest, which is the trade-off the table above prices for you.
The Repayment Assistance Plan
RAP sets the payment from your adjusted gross income rather than your balance:
| AGI | Annual payment |
|---|---|
| $10,000 or less | $120 a year ($10 a month) |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% |
| $30,001 to $40,000 | 3% |
| $40,001 to $50,000 | 4% |
| $50,001 to $60,000 | 5% |
| $60,001 to $70,000 | 6% |
| $70,001 to $80,000 | 7% |
| $80,001 to $90,000 | 8% |
| $90,001 to $100,000 | 9% |
| Over $100,000 | 10% |
The monthly payment is reduced by $50 for each dependent on your tax return, and can never be less than $10.
Two features make RAP different from the income-driven plans it replaces. Unpaid interest is waived rather than added to the balance, so the debt does not grow while you are paying. And if your payment would reduce the principal by less than $50, the government makes up the difference, so the balance always falls by at least $50 a month. Anything left after 30 years of qualifying payments is forgiven, and RAP payments count towards Public Service Loan Forgiveness.
Which plan costs less
For most borrowers with a normal income and a normal balance, Tiered Standard is cheaper in total, because it clears the debt faster. RAP costs less each month, protects you when income is low, and only becomes the cheaper option if your income stays low enough for the forgiveness at 30 years to matter. The table above works out both for your numbers.
One caution: forgiven balances can be taxable as income, depending on the rules in force when the forgiveness happens.
This is a planning tool, not your servicer
These rules changed in 2025 and 2026 and the transition is still running. ICR and PAYE close on 30 June 2028, and borrowers with older loans keep access to plans that new borrowers do not have. For your own loans, the authoritative figures are in your account at studentaid.gov, whose Loan Simulator can pull your actual balances. Use this page to understand the mechanics and to test a scenario quickly.
Quick answers
What will my student loan payment be?
On Tiered Standard it depends on the balance when repayment starts: 10 years under $25,000, rising to 25 years at $100,000 and above. Enter your numbers above for the monthly figure.
What are the federal student loan interest rates for 2026-27?
6.52% for undergraduate Direct Subsidized and Unsubsidized loans, 8.07% for graduate Direct Unsubsidized, and 9.07% for PLUS loans. They are fixed for the life of the loan.
What happened to the SAVE plan?
It ended. For new borrowers from 1 July 2026 the choices are Tiered Standard and the Repayment Assistance Plan. ICR and PAYE close on 30 June 2028.
How does the Repayment Assistance Plan work?
You pay between 1% and 10% of your adjusted gross income, less $50 a month per dependent, with a $10 minimum. Unpaid interest is waived, the balance falls by at least $50 a month, and anything left after 30 years is forgiven.
Does interest build while I am in school?
On unsubsidized loans, yes, from the day the money is paid out, and it is added to the balance when repayment starts. On subsidized loans the government covers it while you study and during the grace period.
Is the autopay discount worth it?
Right now, unusually so. The Department of Education cut the rate by a full percentage point for borrowers on autopay from 1 July 2026 to 30 June 2028, instead of the usual quarter point.
Sources
- Federal Student Aid, interest rates for Direct Loans first disbursed 1 July 2026 to 30 June 2027
- Federal Student Aid, loan fee percentages for 2026–27
- Repayment Assistance Plan: payment bands, dependent reduction, interest waiver, principal match and 30-year forgiveness
- US Department of Education, RISE final rule fact sheet (April 2026) (Tiered Standard terms, plan availability)
- US Department of Education, the 1 percentage point autopay reduction (June 2026)
- Federal Student Aid Loan Simulator, for figures tied to your own account