Tiered Standard repayment plan, 10 to 25 years.

How the plan works

Under 34 CFR 685.208(c)(1), the Tiered Standard plan applies to Direct Loans made on or after July 1, 2026. The borrower makes fixed monthly payments over a repayment period that depends on the total Direct Loan balance when entering repayment, with a minimum payment of $50 a month (or the whole balance if it is under $50):

The same tiers are used by 34 CFR 685.208(b)(8) for a borrower who had Direct Loans before July 1, 2026 and also receives a new one on or after that date. For Direct Loans made before July 1, 2026 the older standard, graduated and extended plans continue to exist, so this calculator is meant for new-loan borrowers.

How the calculator works

It picks the term for your balance and applies the ordinary fixed-payment formula, balance × r ÷ (1 − (1 + r)⁻ⁿ), where r is the annual rate divided by 12 and n the number of months. If the result is under $50 it uses $50 and shortens the payoff. It also shows what a 10-year payment on the same balance would be, and, if you enter income, the first-year Repayment Assistance Plan (RAP) payment from 34 CFR 685.209: a base payment set by adjusted gross income bracket, divided by 12, minus $50 for each dependent, with a $10 minimum.

Worked example

A borrower owes $30,000 at 6.52%. The balance falls in the $25,000 to $50,000 tier, so the term is 15 years. The payment is about $261.66 a month, the total paid is about $47,099 and the interest about $17,099. A 10-year payment on the same loan would be about $340.95, so the longer tier lowers the payment by about $79 a month. A borrower with $120,000 at 7% falls in the 25-year tier: about $848.14 a month, against $1,393.30 over 10 years.

With adjusted gross income of $60,000 and no dependents, the RAP payment is 5% of $60,000 divided by 12, $250 a month, a little less than the Tiered Standard payment in this example. RAP lasts longer, though: forgiveness requires 360 qualifying monthly payments (30 years), and the plan does not charge interest that an on-time payment does not cover.

Tiered Standard or RAP?

• Tiered Standard has a known end date and a fixed payment, so it suits borrowers who expect steady income and want to be debt-free by a date certain.
• RAP ties the payment to income, so it can be much lower in a lean year and higher in a good one, with a 30-year forgiveness horizon. Compare it with the older income-driven plan in the IBR vs RAP comparison.

Limits of this estimate

• The tier is set by the balance when you enter repayment, so interest added before then matters. Use the balance your servicer shows.
• It uses one rate. Loans with several rates produce a slightly different payment.
• Your servicer sets the actual payment. See also the 10-year vs 25-year comparison for older plans.

FAQ

What is the Tiered Standard repayment plan?

It is the fixed-payment plan for Direct Loans made on or after July 1, 2026. The repayment period is 10, 15, 20 or 25 years depending on the total Direct Loan balance, with payments of at least $50 a month.

How long will I be in repayment under the Tiered Standard plan?

Under $25,000: 10 years. From $25,000 to under $50,000: 15 years. From $50,000 to under $100,000: 20 years. $100,000 or more: 25 years, measured on the total Direct Loan balance when you enter repayment.

Is there a minimum payment?

Yes. Payments are at least $50 a month, except when the balance is under $50, in which case the payment equals the outstanding amount.

Does the plan apply to loans I took out before July 2026?

The plan for loans made on or after July 1, 2026 is 34 CFR 685.208(c)(1). A borrower with older Direct Loans who also receives a new one can be placed in the tiered plan under 685.208(b)(8). Loans made only before that date keep the older plans.

How is the RAP payment calculated?

RAP takes a base payment set by adjusted gross income (a flat $120 a year up to $10,000, then 1% of AGI for each $10,000 bracket up to 10% above $100,000), divides it by 12, subtracts $50 for each dependent, and applies a $10 minimum.

Which is cheaper over time, Tiered Standard or RAP?

It depends on your income and balance. RAP can have a lower monthly payment at modest incomes but runs up to 30 years, so the total paid can be higher. Enter your income above to compare the first-year payment, then use your servicer's tools for a full projection.

Can I change plans later?

A borrower repaying under an income-driven plan may change at any time to another plan for which they are eligible, except as otherwise provided in 34 CFR 685.210(b).

Sources

Retrieved 2026-11-02. Each link was opened and checked against the claim next to it.

• 34 CFR 685.208, Fixed payment repayment plans (eCFR, current to 2026-10-29): Paragraphs (b)(8) and (c)(1): Tiered Standard tiers and $50 minimum
• 34 CFR 685.209, Income-driven repayment plans (eCFR, current to 2026-10-29): RAP base payment brackets, $50 per dependent, $10 minimum, interest treatment, 360-payment forgiveness, plan changes
• Federal Register, Reimagining and Improving Student Education final regulations (May 1, 2026): The May 1, 2026 final regulations that set the plan