Student Loans

Graduated

Payments that start low and rise every two years over ten. Costs more in total than Standard and earns no public service credit.

How it works

  • Payments step up every two years and the loan still finishes in ten, so the later payments are considerably larger.
  • Costs more in interest than Standard, because more of the balance is outstanding for longer.
  • Does not count towards Public Service Loan Forgiveness.

No credit towards public service forgiveness

Payments made on this plan do not count towards the 120 needed for Public Service Loan Forgiveness, or towards its temporary expanded version. If you work for a qualifying employer, every month here is a month that earns you nothing towards it.

See what that costs over ten years

Who can still get on it

One loan first disbursed on or after 1 July 2026 puts every one of your Direct Loans into the RAP and Tiered Standard world, including loans you took out years earlier. A new Direct Consolidation Loan counts as such a loan. Consolidating to reach IBR or ICR had to be done by 30 June 2026.

Compare this against the other plans

Sources

  1. Repayment plans and important definitions, U.S. Department of Education. Checked on . Backs which plans are open to which borrowers from 1 July 2026; the Tiered Standard term brackets and its $50 minimum; the effect of a single post-cutover disbursement on all of a borrower's loans.
  2. Income-driven repayment plans, U.S. Department of Education. Checked on . Backs the IBR, PAYE and ICR formulas and forgiveness horizons.
  3. Court actions affecting income-driven repayment, U.S. Department of Education. Checked on . Backs the status of SAVE after the 10 March 2026 order; the 1% automatic debit reduction; that income-driven payment counters are not currently displaying.
  4. Reimagining and Improving Student Education (RISE): Federal Student Loan Program, final regulations, Office of the Federal Register. Checked on . Backs the regulation implementing the plan changes, effective 1 July 2026.

Checked on .