Student Loans

Income-Contingent Repayment

The only income-driven route a consolidated parent PLUS loan ever had. Eliminated in 2028, after which those borrowers move to IBR rather than to RAP.

How it works

  • The lesser of twenty percent of discretionary income or a twelve-year fixed-equivalent payment adjusted for income, forgiven after twenty-five years.
  • Only available now if the loan was consolidated into a Direct Consolidation Loan before 1 July 2026.
  • Terminates on 1 July 2028. Consolidated parent PLUS borrowers on it at that point are moved to IBR.

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 .