Tiered standard plan.

In plain English

The tiered standard plan is the new standard (fixed-payment) repayment plan created by the 2025 law P.L. 119-21. Under it, your repayment term is tiered by your total balance: borrowers who owe less get a shorter payoff window, while those who owe more get a longer one. The published tiers are 10, 15, 20, or 25 years, set by the amount borrowed. For borrowers taking federal loans on or after July 1, 2026, this new standard plan and the income-driven Repayment Assistance Plan (RAP) are the only two repayment choices. Payments are fixed rather than based on income, so you pay the same amount each month within your tier. The exact balance brackets and term lengths are set in the law and implementing rules.

01Why it matters

If your income is stable and you want a predictable payment with a clear end date, the tiered standard plan may cost less in total interest than an income-driven plan. Knowing your tier tells you how long you will be paying.

02The math, step by step

After July 1, 2026, a borrower who owes under $25,000 is placed in the 10-year tier, a balance of $25,000 to under $50,000 lands in a 15-year tier, $50,000 to under $100,000 in a 20-year tier, and the largest balances in a 25-year tier.

03What this is NOT

04Receipts

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