Terms of Use 

Starting July 1, 2026, federal repayment is being simplified into two primary paths for new loans. If you are already in repayment, your existing plan may be phased out by 2028.

1. Federal Stafford Loans (Student)

Stafford loans still offer a six-month grace period. You are not required to make payments until six months after you graduate or drop below half-time enrollment.

• Subsidized Loans: The government pays your interest during school, the grace period, and authorized deferments.
• Unsubsidized Loans: Interest accrues immediately. In 2026, many students are choosing to pay just the interest during school to prevent "capitalization" (where interest is added to your principal balance).
• New RAP Plan: New borrowers after July 1, 2026, will primarily use the Repayment Assistance Plan (RAP). This plan caps payments at 1%–10% of your total income and includes a mandatory minimum payment of $10/month.

2. Federal PLUS Loans (Parent)

Repayment traditionally begins 60 days after the final disbursement. However, for 2026, there are critical nuances:

• Deferment: Parents can still request to defer payments while the student is in school and for six months after. Note: Interest continues to accrue during this time.
• Repayment Terms: Standard repayment is 10 years, but for balances over $25,000, the term can now extend up to 25 years under the Tiered Standard Plan.

3. The 2028 Sunset Provision

If you are currently on the PAYE or ICR plans, these programs will officially "sunset" on July 1, 2028. You will be required to switch to either the IBR plan or the new RAP plan at that time.

Repayment Comparison