Student loan borrowers using the Student Loan Simulator tool at StudentAaid.gov will now see new repayment options.
As of July 1, the new Repayment Assistance Plan as well as the new Tiered Standard Repayment Plan are available in the loan simulator. RAP is the newest income-driven repayment plan available to any borrower with eligible student loan(s). The Tiered Standard Repayment Plan is available only to borrowers whose loans were disbursed or consolidated after July 1, 2026.
The loan simulator allows borrowers to compare the most up-to-date repayment options to find a plan that best suits their circumstances.
Under the Repayment Assistance Plan (RAP), which went into effect July 1, monthly payments are based on a percentage of the borrowers adjusted gross income (AGI), ranging from 1% to 10% depending on income level, with a minimum payment of $10 per month.
Under the new Tiered Standard Repayment Plan, monthly payments are set at a fixed amount to pay off loans within 10-25 years based on the outstanding principal balance of all of the borrower’s Direct Loans at the time entering the plan.
