Graduates can choose between income-based repayment plans and plans with a fixed monthly payment over a set repayment period. All federal loans must be repaid under the same repayment plan. If graduates do not pick a repayment plan, they will automatically be enrolled in the Standard Repayment Plan, a 10-year fixed payment plan, which may have a high monthly payment. An overview of current repayment options can be found at: https://studentaid.gov/manage-loans/repayment/plans.

Fixed payment plans base monthly payments on the total amount of loans taken out, often resulting in higher monthly payments than income-based plans. For graduates with high amounts of debt, these monthly payment may not be reasonable to pay on a resident's salary. Many graduates therefore pursue income-based plans during their residency years. Studentaid.gov's Loan Simulator allows you to determine which plans you are eligible for and to see estimates for monthly and overall payments: https://studentaid.gov/loan-simulator/.

However, it is important to understand that federal student loan repayment options are changing. While borrowers currently have access to multiple fixed and income-driven repayment plans, these options will no longer be available to borrowers entering repayment as of July 1^st, 2026. Under the “One Big Beautiful Bill Act,” borrowers will now have access to two repayment plans – the new Standard Repayment Plan and the Repayment Assistance Plan (RAP). The ICR and PAYE plans are to be phased out by July 1^st, 2028. Borrowers enrolled in these plans must transition their loans to a different repayment plan (current IBR, current standard, or RAP) by this date. If no selection is made, loans will automatically be moved to the RAP.

The table below summarizes these options;

Repayment Plans Available Beginning July 1^st, 2026

Plan Name	Eligible Loan Types	Monthly Payment Amount	PSLF Eligible	Availability
Fixed Repayment Plans
New: New Standard Repayment Plan	All federal student loans	Fixed payments on 10 to 25-year repayment timeline. Timeline based on total amount owed.	Yes – however, may pay off loans before receiving forgiveness	Available for current borrowers beginning July 1^st, 2026.
Income-Driven Plans
New: Repayment Assistance Plan (RAP)	All federal student loans	1-10% of family Adjusted Gross IncomeLinks to an external site.. Interest subsidy on unpaid interest that exceeds minimum monthly payment. Forgiveness after 30 years.	Yes	Available for current borrowers beginning July 1^st, 2026.
Income-Based Repayment (IBR)	For loans issued before July 1^st, 2026: Direct Subsidized and Unsubsidized Loans Grad PLUS loans Direct Consolidation Loans that do not include PLUS loans made to parents	10% of discretionary income. Never more than what you would pay under 10-year Standard Plan. Forgiveness after 20-year repayment term.	Yes	Not available for those with new loans following July 1^st, 2026. Remains available for current enrollees.

Additional Resources:

2026 Federal Student Loan Repayment Plans - Overview of Current Plans and Changes

Read more about the RAP plan here: What Is the New Repayment Assistance Plan (RAP) for Student Loans? - NerdWallet.

Watch this AAMC webinar on changes to federal loan repayment options: https://youtu.be/-HTo-MsS7us.