Student loans in 2026

What changed

1. The SAVE plan has ended

   A federal court order ended SAVE on March 10, 2026. Starting July 1, 2026, servicers began sending each SAVE borrower a notice with at least 90 days to choose a new plan. Borrowers who don't choose are moved to a standard plan.

   Sources: ed.gov · studentaid.gov

2. The Repayment Assistance Plan (RAP) opened July 1, 2026

   Payments are 1% to 10% of adjusted gross income, depending on its bracket, with the rate applied to the whole AGI. $50 a month comes off for each dependent; the minimum is $10. Unpaid interest is waived for on-time payments, and principal falls each month by at least $50 or the amount paid, whichever is less. RAP payments count toward PSLF.

   Sources: law.cornell.edu · ecfr.gov

3. IBR is only for borrowers with no new loans

   Income-Based Repayment stays open only if every Direct Loan you have was made before July 1, 2026. A new loan, or consolidating on or after that date, moves all your loans to RAP or Tiered Standard.

   Sources: law.cornell.edu · studentaid.gov

4. Tiered Standard replaces the old standard plan for new loans

   Fixed payments over 10, 15, 20 or 25 years depending on your balance. The Department of Education says Tiered Standard payments do not count toward PSLF.

   Sources: ecfr.gov · studentaid.gov

5. Grad PLUS ended and medical school borrowing is capped

   New professional students, including MD and DO students, can borrow up to $50,000 a year and $200,000 in total in federal unsubsidized loans. Grad PLUS is closed to new graduate and professional borrowers. Students enrolled with a loan before July 1, 2026 keep the old limits for up to three academic years. A federal court partly stayed the Department's definition of a professional degree on June 24, 2026; MD and DO programs are not affected.

   Sources: govinfo.gov · studentaid.gov

6. Residency forbearance months don't count

   Mandatory residency forbearance is still available, 12 months at a time. Interest accrues, and those months count toward neither PSLF nor plan forgiveness. Payments made on RAP or IBR during residency do count.

   Sources: ecfr.gov · studentaid.gov

7. The PSLF employer rule was vacated, and appealed

   A 2025 rule excluding employers with a “substantial illegal purpose” was vacated by two federal courts on June 30, 2026. The government appealed on August 27, 2026, so the rule could return.

   Sources: federalregister.gov · dwt.com

Dates ahead

Still unsettled

These questions are open in court or in the regulations. Check studentaid.gov before acting on them.

• PSLF employer rule: vacated 2026-06-30 by D. Mass. and D.D.C., appealed 2026-08-27. An appellate reversal could revive the 'substantial illegal purpose' exclusion. The RISE rule's restatement of 685.219 still appears in the eCFR.
• RAP qualifying deferment/forbearance months: the statute (455(q)(1)(F)(vii)) counts listed deferment/forbearance months that ended before enactment (2025-07-04); 34 CFR 685.209(k)(8)(C)(8) says months that ended before 2026-07-01. Which cutoff ED applies is unconfirmed.
• Tiered Standard and PSLF: ED says Tiered Standard never qualifies. HEA 455(m)(1)(A)(iii) counts payments of at least the 10-year standard amount under (d)(1) or (g) plans; whether a 10-year-tier Tiered Standard payment could qualify is untested.
• 34 CFR 685.219(b)(28)(ii) cites a 'consolidation loan standard repayment plan with a 10-year repayment term under 685.208(c)', but 685.208(c) is now Tiered Standard; this looks like a drafting error.
• PAYE new enrollment: the eCFR still requires having been on PAYE on 2024-07-01 (a 2023-rule provision), while studentaid.gov says eligible borrowers can apply for PAYE after the 2026-03-10 court order invalidated most of the 2023 rule.
• IBR family size for married-filing-separately borrowers: current regulation counts the spouse only on a joint return (2023-rule language re-adopted in the RISE rule); the pre-2023 rule counted the spouse regardless. ED's servicer practice is unconfirmed.

Loan articles from the archive

Written before these changes. Each carries a notice and is kept for its general advice on budgeting and debt.

1. May 22, 2024
   10 Financial Traps Every Doctor Falls Into – And How to Avoid Them

   Andwise Team · Physician Perspectives

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2. May 19, 2024
   Next Steps for Unmatched Medical Graduates with Student Loans

   Andwise Team · Financial Education

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3. Feb 27, 2024
   Empowering First-Generation Medical Graduates with Andwise

   Kanav Jain · About Andwise

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4. Oct 23, 2023
   The Power of Personal Finance Education: Helping Family

   Varun Verma, MD · Physician Perspectives

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5. Oct 17, 2023
   Achieving Financial Success as a Dual Physician Couple

   Rikki Racela, MD · Physician Perspectives

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6. May 2, 2023
   Paying Off Debt: Strategies for Physicians with Student Loans, Credit Card Debt, and Other Obligations

   Tanya Frias, CFP®, ChSNC® · Financial Education

   ResidentsEarly careerMid career
7. Dec 2, 2022
   To Err is Human: Physician money mistakes, part 1

   Varun Verma, MD · Physician Perspectives

   Early careerMid career