PAYE and ICR transition timeline
- July 1, 2026: RAP became available under the new repayment framework. Loan dates also matter to eligibility for other plans, including IBR.
- Through June 30, 2028: PAYE and ICR are scheduled to sunset at the end of this date, but that does not guarantee every borrower can remain enrolled until then. Separate plan-specific eligibility and enrollment-history rules can affect whether a borrower may stay in or re-enter PAYE or ICR.
- By July 1, 2028: The current rule directs affected borrowers to elect another available plan. If you do not make an election, the regulation describes an automatic transition based on loan eligibility.
- After the transition: PAYE and ICR are no longer the long-term repayment option. RAP, IBR, or an available fixed-payment plan may be relevant depending on the loan and borrower. Confirm the plan and payment shown by your servicer.
Dates describe the currently published federal schedule checked October 7, 2026. If Federal Student Aid or your servicer issues newer instructions, verify the effective date and affected loans in that notice.
Who may be affected—and why borrowers can have different options
The transition concerns borrowers repaying eligible federal loans under PAYE or ICR. It does not mean every borrower has the same plan choices, payment, or action today. Federal repayment options are determined by the individual loan and borrower facts, not just the name of the current plan.
- Loan program and type: RAP and IBR rules apply to eligible federal loans; not every loan type qualifies.
- When a loan was first disbursed: The 2026 plan changes create different rules for loans from before and after July 1, 2026. A borrower with loans on both sides of that date may need to review them separately.
- PAYE and ICR enrollment history: Each plan has its own entry and continued-eligibility conditions. Leaving a plan, later borrowing, or a change in loan eligibility may affect whether you can remain enrolled or re-enter before the sunset.
- Consolidation and Parent PLUS history: Which loans were combined, when consolidation occurred, and whether a Parent PLUS loan was repaid can affect available options.
- Account status and notices: Default, deferment, forbearance, pending applications, and servicer processing can affect what happens next. Keep and follow the latest written instructions on your account.
- Household and forgiveness goals: Income, tax filing, family details, remaining balance, PSLF employment, and months already credited can change which eligible plan is a better fit.
The July 1, 2028 transition date is not a universal date for receiving a personal notice, and the rule does not set one notice-mailing date for every borrower. Follow any earlier account-specific instruction from your servicer. The automatic transition provision is not a personalized plan recommendation; verify each loan and its eligibility with your servicer and the current regulation before making a decision.
Compare the main alternatives
| Option | What to compare | Check before choosing |
|---|---|---|
| RAP | Income-based payment formula, qualifying dependent reduction, treatment of interest, and forgiveness timeline. | Eligible Direct Loan type, Parent PLUS or consolidation history, loan dates, and the payment calculated for your household. |
| IBR | Whether you qualify, payment amount, any applicable payment cap, and remaining forgiveness timeline. | Loan type and dates, earlier borrowing history, and any IBR eligibility restrictions for each loan. |
| Fixed-payment plan | Monthly bill, payoff time, total interest, and whether the plan meets the requirements for your forgiveness goal. | Loan balance and term, and whether the specific plan and payments qualify for PSLF in your situation. |
Do not compare only the first month’s bill. Use the official payment estimate, remaining term, interest treatment, forgiveness progress, and any PSLF months that matter to you. A plan with a lower payment is not automatically the best choice for every borrower.
Compare RAP and IBR or use the free RAP calculator and free IBR calculator as educational estimates.
PSLF and forgiveness: protect the progress you have
The PSLF regulation includes rules for qualifying repayment plans and months. It specifically limits qualifying ICR payments to those received by June 30, 2028. After a transition, future PSLF credit depends on the replacement plan, loan eligibility, qualifying employment, and the requirements for each month. RAP and IBR can qualify when the applicable rules are met.
A plan change alone does not automatically erase qualifying PSLF payments already credited to an eligible loan. But do not assume a pending application, every payment, or every forbearance month counts. Download or record your current loan-by-loan payment history, continue to follow the amount due until your servicer confirms a change, and check the official PSLF tracker after processing.
IDR forgiveness and PSLF are different programs with different counts and conditions. If you are pursuing either, compare the expected remaining qualifying months and plan-specific payment before making an election.
Read our PSLF plan-switching guide or use the free Federal Student Aid PSLF Help Tool .
Borrower checklist
- Make a loan inventory. For each loan, record the type, first-disbursement date, current plan and status, balance, and whether it is a consolidation loan.
- Save your current records. Download payment history and any PSLF or IDR forgiveness counts; keep current servicer notices and application confirmations.
- Check the current rules and your notice. Confirm which loans are in PAYE or ICR, what the notice says about timing, and whether any nearer account deadline applies.
- Compare eligible options. Review RAP, IBR, and available fixed plans using your current income, tax filing status, family details, loan dates, and forgiveness goals.
- Use official tools for the final application. Federal Student Aid and your loan servicer provide the official application path. Keep making the payment shown on your account unless the servicer confirms a different amount or status.
- Recheck after the change. Confirm the new plan, payment amount, effective date, and any forgiveness tracker updates for each affected loan.
PAYE and ICR transition FAQs
Are PAYE and ICR ending in 2028?
Yes. Under the current federal transition rule, PAYE and ICR are scheduled to end June 30, 2028. The rule sets July 1, 2028 as the transition date for affected borrowers. Check the live regulation and your servicer notices for updates.
Do I have to choose a new plan before July 1, 2028?
The current rule directs affected borrowers to elect another available repayment plan by July 1, 2028. If no election is made, the regulation provides an automatic transition based on loan eligibility. This is a future transition date, not a reason to submit an application today without comparing your loans and current account instructions.
What happens if I do not pick a plan?
Under the transition text currently in 34 CFR 685.209, the automatic path is RAP for loans eligible for RAP and IBR when that RAP eligibility condition is not met. Eligibility is loan-specific; review the live rule and any later individualized servicer notice before relying on a default placement.
Can every PAYE or ICR borrower switch to RAP or IBR?
No. A repayment plan is not available for every loan. Loan type, first-disbursement date, consolidation and Parent PLUS history, default status, and other plan rules can affect whether a loan qualifies. Borrowers with loans from different periods may have different options for different loans.
Can I switch before 2028?
You can review and compare available plans before the sunset, but whether a plan can be selected now depends on your loans and the current application rules. Compare the actual payment, interest and forgiveness consequences, then follow your servicer’s current instructions. Do not switch solely because a headline says “ending in 2028.”
Can I stay in PAYE or ICR until the 2028 transition?
Not necessarily. June 30, 2028 is the scheduled sunset, but PAYE and ICR have different loan and borrower eligibility conditions before that date. Loan disbursement dates, enrollment history, later borrowing, and Parent PLUS consolidation history can change whether a borrower may stay in or re-enter a plan. Check your own loan history and servicer instructions rather than assuming everyone has the same personal deadline.
Will my PAYE or ICR payments still count for PSLF?
The PSLF regulation recognizes qualifying months subject to the plan, loan, payment and employment requirements; it also sets a June 30, 2028 cutoff for qualifying ICR payments. A plan change by itself does not erase qualifying payments already credited, but future months must meet the rules in effect for that loan and month. Check your official PSLF tracker.
Does the transition erase IDR forgiveness progress?
Do not assume that a plan transition erases prior qualifying history or that every prior month will transfer in the same way. IDR forgiveness counts and PSLF counts follow separate rules. Ask your servicer how your specific loans and qualifying months will be recorded under the transition, and save a copy of your current payment history.
Is there a fee to select a federal repayment plan?
No. Federal Student Aid’s official repayment information, applications and borrower assistance are free. The optional $49 RepayPilot Report is separate educational guidance; it is not a federal application and is not required to change plans or receive federal help.