Students who borrow a federal student loan on or after July 1st, 2026, will have access to two loan repayment plans. The new Standard Repayment Plan gives borrowers fixed monthly payments with a loan term ranging from 10 to 25 years, depending on how much is borrowed. The extended term enables borrowers with higher loan balances a more affordable monthly payment amount. Borrowers can pay more than the minimum required amount each month, without penalty. Doing so will reduce the amount of interest paid over the life of the loan.
Alternatively, the Repayment Assistance Plan (RAP) provides borrowers with a monthly payment amount based on a percentage of their adjusted gross income and the number of dependents they have. Unpaid interest is waived in cases where a scheduled payment is less than the amount of interest that accrues. In addition, the Dept. of Education will pay up to $50 towards the total principal loan balance, if the monthly payment doesn't reduce that principal by at least $50. Borrowers who enroll in RAP and who have a loan balance remaining after submitting 360 payments, will have their balance forgiven.
In most cases, repayment of your federal student loans begins approximately six months after graduation. You can access calculators on the web, such as this one offered by AccessLex, to see how much you would be paying. To learn more about federal loan repayment plan options, you can also visit Federal Student Aid's repayment plan website. Borrowers who are temporarily unable to pay, also have access to various postponement options.
Public Service Loan Forgiveness (PSLF) Program
Under this program, loans can potentially be forgiven in as little as 10 years of repayment while enrolled in the Repayment Assistance Plan (RAP). Borrowers who make 120 on-time payments on their Direct Loans while engaged in a full-time public service occupation can request that their remaining loan balance be forgiven. For more information about the Public Service Loan Forgiveness Program, please see PSLF.
Questions about repaying student loans.
Choosing a repayment plan option can be confusing. Students and alumni who are seeking advice on repayment are encouraged to reach out to the IU Maurer financial aid office for guidance. AccessLex also offers AccessConnex, a free service where law students and alumni can schedule an appointment with an Accredited Financial Counselor. AccessLex also offers this helpful guide, to assist students develop a strategic plan for repaying their student loans.