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Repayment plans / Guides

Last verified Oct 17, 2026 against the official sources listed below

Deferment and forbearance changes for loans made from July 1, 2027

For loans made on or after July 1, 2027

  • No unemployment deferment.
  • No economic hardship deferment.
  • Forbearance: at most 9 months during any 24-month period.

Loans made before July 1, 2027 keep the deferment options they have now.

Why RAP’s floor matters here

With fewer ways to pause payments, the income-driven plans become the main tool for low income. RAP’s payment can drop as low as $10 a month, and IBR’s to $0.

Under RAP

Months in deferment or forbearance get no interest waiver and no principal match. Unemployment and economic hardship deferment months do count toward RAP’s 360 payments.

Default and rehabilitation

From July 1, 2027, a defaulted loan can be rehabilitated twice instead of once, and the minimum monthly rehabilitation payment on Direct Loans made from that date is $10.

What to do next

  1. If income drops, look at an income-driven plan first: RAP can go as low as $10 and IBR to $0.
  2. Know that RAP gives no waiver or match in deferment or forbearance months.

Compare RAP, IBR and Standard with your numbers

Not financial or legal advice. This page explains the published rules. It does not tell you which plan to choose. Your loan servicer and StudentAid.gov have the final word on your account.

Official sources

  1. Public Law 119-21 (H.R. 1, signed July 4, 2025), Title VIII, Secs. 81001–82004
  2. 34 CFR 685.209, income-driven repayment plans (current eCFR, as amended May 1, 2026)
  3. StudentAid.gov: One Big Beautiful Bill Act – Important Definitions (updated Aug. 24, 2026)

Last verified Oct 17, 2026. Corrections are logged on What changed.

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