Closing: ends by July 1, 2028
Pay As You Earn (PAYE)
10% of discretionary income with a 20-year clock, for borrowers already on it.
See where it ranks for you, free Two minutes, your own numbers, every plan side by side.
- Payment
- 10% of discretionary income (AGI minus 150% of the poverty guideline), capped at the 10-year Standard amount. Married filing separately counts only your income, not your spouse's.
- Who qualifies
- A path only for borrowers already enrolled in PAYE. Required a first loan on or after October 1, 2007 and a disbursement on or after October 1, 2011.
- Forgiveness
- After 20 years of qualifying payments.
- Interest
- Unpaid interest on subsidized loans covered for three years; other unpaid interest accrues.
- PSLF
- Qualifies.
- Taxes
- Forgiveness is taxable federal income from 2026, except under PSLF.
- How to apply
- Not open to new applicants. Borrowers on it stay until the plan closes.
- Leaving it
- Moving to IBR or RAP is a plan change: unpaid interest may capitalize. Everyone on PAYE moves by July 1, 2028.
- Dates
- Closes no later than July 1, 2028.
Good for
- Borrowers already on PAYE and near the 20-year mark
Watch out
- Ends in 2028; the move is coming either way
Where PAYE lands for you depends on your numbers.
Right Repay runs every plan on your income, household, balance and loan dates, ranks them on all-in cost, and shows the math. Positions 2 onward are free; the kit to switch is $29.
Rank my plans, freeSources
- 34 CFR 685.209, income-driven repayment plans Code of Federal Regulations
- Income-driven repayment plans Federal Student Aid
- Public Law 119-21, the 2025 reconciliation act (student loan title) Congress.gov
Which plan is right for you depends on your income, your balance and your loans' dates.
Rank every plan for me, freeThe other plans
- Repayment Assistance Plan (RAP)New, since July 1, 2026
- Income-Based Repayment (IBR)Open, permanent for loans made before July 2026
- Standard 10-yearThe default when you choose nothing
- Graduated 10-yearOpen
- Extended 25-yearOpen, for more than $30,000 in Direct Loans
- Income-Contingent Repayment (ICR)Closing: ends by July 1, 2028
- Tiered StandardNew, for loans made on or after July 1, 2026