By July 1, 2028, federal borrowers on the older income-driven plans (PAYE, ICR, and any remaining SAVE enrollments) must choose a new plan, or they'll be moved to the Repayment Assistance Plan (RAP). Borrowers already on IBR can stay on IBR. Consolidated Parent PLUS borrowers on ICR are moved to IBR instead, since Parent PLUS loans can't use RAP. June 30, 2028 is also when the temporary 1% autopay rate cut ends.
Who does the July 1, 2028 deadline affect?
| If you're on… | By July 1, 2028 |
|---|---|
| PAYE | Choose IBR or RAP, or be moved to RAP |
| ICR (not Parent PLUS) | Choose IBR or RAP, or be moved to RAP |
| SAVE | SAVE has already ended. Borrowers are getting 90-day notices now; miss yours and you're placed on a standard-type plan |
| IBR | Nothing required. You can stay on IBR |
| Consolidated Parent PLUS on ICR | Moved to IBR |
| Standard, Graduated, Extended | Not directly affected |
What happens if I do nothing?
If you're on PAYE or ICR (and not a Parent PLUS borrower), you'll be placed on RAP. RAP charges 1%–10% of your total income, minus $50 a month per dependent, with a $10 minimum, and forgiveness after 30 years. For some borrowers that's cheaper than PAYE; for others it's more. Choosing yourself, ahead of time, is the only way to make sure you land on the cheaper plan.
Can I stay on IBR after 2028?
Yes. Borrowers on IBR can remain on IBR. IBR charges 10% of discretionary income (15% for older loans) and can be $0 for lower incomes. One catch: taking out a new federal loan on or after July 1, 2026 can change which plans you're allowed to use, so check before borrowing again.
What happens to Parent PLUS loans in 2028?
Parent PLUS loans can't use RAP. If you consolidated in time (disbursed by June 30, 2026) and you're on ICR, you'll be moved to IBR when ICR ends. If you never got onto an income-driven plan, you're limited to fixed-payment plans. Full details in our Parent PLUS guide.
Will the 2028 changes affect PSLF?
Payments on IBR and RAP both count toward Public Service Loan Forgiveness when you pay on time and in full. The risk is a gap: months spent on a non-qualifying plan, or late payments on RAP, don't count. Switch plans before the deadline so you don't lose qualifying months.
The temporary 1% autopay rate cut (for borrowers who enroll by December 31, 2026) ends June 30, 2028. ICR payments for consolidated Parent PLUS loans count toward PSLF only through June 30, 2028.
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What happens on July 1, 2028 for student loans?
Borrowers on PAYE and ICR must choose a new repayment plan, IBR or RAP, or they'll be moved to RAP. IBR borrowers can stay on IBR.
Will I be moved to RAP automatically?
If you're on PAYE or ICR (and not a Parent PLUS borrower) and don't choose a plan by July 1, 2028, you'll be placed on RAP.
Can I stay on IBR after July 2028?
Yes. Borrowers on IBR can remain on IBR.
What happens to Parent PLUS loans in July 2028?
Consolidated Parent PLUS borrowers on ICR are moved to IBR, since Parent PLUS loans can't use RAP.
When does the 1% autopay discount end?
June 30, 2028, for borrowers who enrolled in autopay by December 31, 2026.
Sources
- James Madison University: OBBBA Direct Loan repayment changes
- Tate Law: Parent PLUS loans in 2026
- The College Investor: How RAP works
- Forbes: Interest rate reduction deadline extended
Rules can change. Always confirm your details on StudentAid.gov or with your loan servicer before acting.