Repayment plans: Standard, IDR, PSLF, refinance
Federal student loan plans are a menu, not a default. Picking wrong can cost (or save) tens of thousands.
The plan menu
- •STANDARD (10 yr) — fixed payment, fastest payoff, most you'll ever pay per month.
- •GRADUATED — starts low, steps up every 2 years.
- •IDR (income-driven) — payment based on income. For loans made before July 1, 2026: IBR (10% of discretionary income for newer borrowers, forgiveness after 20 years; 15% / 25 years for older loans). Loans made on or after July 1, 2026 use the new Repayment Assistance Plan (RAP). The SAVE plan has ended.
- •PSLF — work full-time for gov / 501(c)(3) for 10 years on an IDR plan → balance forgiven, tax-free.
- •REFINANCE → private — usually lower rate, but you LOSE all federal protections.
Once you refi to a private lender, you can never go back. You lose IDR, PSLF, and all federal forbearance options. Only refi if you're certain you'll never need any of them.
Government (federal/state/local) and 501(c)(3) nonprofits. Doctors at non-profit hospitals, teachers, public defenders, social workers — all common qualifiers. Use the Employer Search tool on studentaid.gov.
−$272/month
Teacher's IBR vs Standard savings
Public-school teacher with $42k of loans at 6.5% on a $48k salary, family of 1. IBR (10% of income above 150% of the poverty line): about $204/mo. Standard: about $477/mo. That frees up about $272/mo to invest, save, or live — confirm with the official Loan Simulator, since plan rules changed in 2026.
Try it yourself
Run your real federal loan numbers across Standard, income-based repayment (IBR), and PSLF.
| Plan | Monthly | Total paid |
|---|---|---|
| Standard (10 yr) | $477 | $57,228 |
| IBR (10% of discretionary) | $204 | $49,050 |
| PSLF on IBR | $204 | $24,525 |
Cheapest path on these numbers: PSLF on IBR at $204/mo. PSLF wins big when you qualify (gov / 501(c)(3)). Standard wins when income is high enough to attack principal fast.
Federal repayment plans changed in 2026: the SAVE plan ended, and a new Repayment Assistance Plan (RAP) opened on July 1, 2026 — it's the only income-driven option for loans first made after that date. This widget doesn't model RAP, and IBR forgiveness outside PSLF is taxable again after 2025. Compare every plan you're eligible for with the official Loan Simulator on studentaid.gov.
Real life: meet Maria's PSLF math
Maria works at a 501(c)(3) hospital with $80k of loans at 6.5% on $58k AGI. On IBR: about $288/mo. After 10 years and 120 qualifying payments: balance forgiven (tax-free under PSLF). Total paid: about $34,500 vs $109,000 on Standard.
$34,500 paid vs $109,000 on Standard
Takeaway
Run your real numbers in the IDR vs Standard widget, then confirm at studentaid.gov's Loan Simulator — plans changed in 2026. If you work for gov or 501(c)(3), PSLF on an income-driven plan is almost always the move.
What permanent thing do you give up by refinancing federal student loans into private?
Takeaway: The right repayment plan depends on income, employer, and forgiveness eligibility — not on the lowest monthly payment alone.
Try together: Use the IDR vs Standard widget with the learner's actual loan numbers. Then check PSLF employer eligibility at studentaid.gov.