Right Repay

Forgiveness in 2026

Student loan forgiveness in 2026: what is left, when it comes, and who pays the tax.

Four ways a federal balance still gets forgiven this year, the clock on each, and what four borrowers would have forgiven on IBR against RAP. Nothing here is a promise. Every rule links to its source, and the ranking counts forgiveness and the tax on it in what you pay all in.

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Four columns: IBR forgives after 20 or 25 years, taxed; RAP after 30 years, taxed; PSLF after 120 payments, tax free; SAVE forgiveness struck down

The four paths, and the one that closed

IBR
After 20 years of qualifying payments for new borrowers, 25 for earlier borrowers. Earlier payments under IBR, PAYE, ICR and SAVE count. Months in RAP do not. Forgiveness after 20 or 25 years is taxable federal income from 2026. PSLF forgiveness is not.
RAP
The remaining balance is forgiven after 360 qualifying payments, 30 years. Months in RAP do not count toward IBR's 20 or 25 year forgiveness if you later switch. Forgiveness after 30 years is taxable federal income in the year it happens, under the law since January 1, 2026. PSLF forgiveness is not.
PSLF
120 qualifying payments on a qualifying plan while working full time for a government or nonprofit employer. The forgiven balance is tax free. RAP, IBR, PAYE and ICR count; Graduated and Extended do not, except a month whose payment matches the 10-year Standard amount.
PAYE and ICR
After 20 years of qualifying payments. Both plans close by July 1, 2028, so their clocks end on IBR or RAP.
SAVE
Its forgiveness never happened: the courts blocked it and the plan is being wound down. Months in the SAVE forbearance since August 1, 2025 earn no credit toward forgiveness or PSLF.

Four borrowers: what IBR and RAP would forgive

The engine runs each plan month by month at a flat income. A big forgiven balance is not a win: it comes with a tax bill that year, and the plan that forgives the most is often the one that cost the most to get there.

BorrowerOn IBROn RAP#1 planAll in on #1
$38,000 income, $27,000 in loans$33,980 after 20 years, tax about $7,476$9,000 after 30 years, tax about $1,980Income-Based Repayment$35,596
$46,000 income, $58,000 in loans$89,280 after 20 years, tax about $19,642$40,000 after 30 years, tax about $8,800Income-Based Repayment$63,762
$55,000 income, $48,000 in loans$48,280 after 20 years, tax about $10,622$29,437 after 30 years, tax about $6,476Standard 10-year$65,404
$85,000 income, $95,000 in loans$96,380 after 20 years, tax about $21,204$37,387 after 30 years, tax about $8,225Standard 10-year$129,445

Assumes single, a family of one, first loan after July 1, 2014, a 6.5% rate, no public service, flat income, and a 22% tax on any taxable forgiveness. Your own numbers change the order.

Four things people get wrong

The tax bill is real

From 2026, a balance forgiven under IBR, RAP, PAYE or ICR is federal taxable income in the year it happens. Only PSLF forgiveness is tax free. The ranking assumes 22% and shows it on every plan.

Forbearance months count toward nothing

Interest has run in the SAVE forbearance since August 1, 2025, and those months earn no credit toward any forgiveness. Every month on a qualifying plan is one on the clock; every month waiting is not.

RAP time does not count toward IBR

Months in RAP do not count toward IBR's 20 or 25 year forgiveness if you switch later. Pick the plan you can stay on, not the one with the lowest first bill.

Public service is a different clock

PSLF counts payments, not years, and needs qualifying employment throughout. Our PSLF guide ranks the plans for three public servants and lists the two things to do this month.

A man at a desk by a window reading a printed repayment plan with a pen in his hand

Forgiveness, the tax on it, and the plan that gets you there cheapest.

The free ranking runs every plan you qualify for on your income and loans, month by month, with forgiveness and its tax counted. Positions 2 onward are free; the kit with the pre-filled form is $29.

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Sources

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