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PSLF and income-driven repayment after the 2026 overhaul

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Public Service Loan Forgiveness still exists — and the repayment menu around it was rebuilt in 2026. Know which plan counts, which deadlines apply to you, and what to file every year.

THE IDEA

Public Service Loan Forgiveness (PSLF) cancels the remaining balance on your Direct Loans after 120 qualifying monthly payments while you work full-time for a qualifying employer — a government agency or 501(c)(3) nonprofit, which includes most residency and fellowship hospitals. Only Direct Loans qualify (consolidate others in), you must be on a qualifying repayment plan, and you certify employment with the PSLF Help Tool — ideally every year, not once at the end.

120qualifying payments for PSLF
1–10%of AGI: RAP payment sliding scale
30 yrsto forgiveness under RAP

The repayment menu changed on July 1, 2026. The SAVE plan was terminated, and the Repayment Assistance Plan (RAP) launched as the only income-driven option for new borrowers: payments on a 1–10% of adjusted-gross-income sliding scale with a $10 floor, unpaid interest canceled each month you make your payment, principal reduced by at least $50 a month, and forgiveness after 30 years. Borrowers already on PAYE or ICR can stay through July 1, 2028, then choose RAP or IBR. PSLF still counts under RAP — the 120-payment clock does not restart when plans change.

Your borrower status sets your rulesNew-borrower limits, plan sunsets, and consolidation cutoffs depend on when you borrowed. Confirm your status and options at StudentAid.gov before choosing a plan — do not assume a colleague's plan is yours.
Refinancing is a one-way doorRefinancing federal loans into a private loan permanently ends PSLF eligibility — private loans can never be PSLF-qualifying, and you also give up income-driven repayment, the RAP interest cancellation, and federal forbearance protections. Rule out PSLF before you refinance, not after.

Your next steps

  1. Use the PSLF Help Tool to confirm your employer's qualifying status.
  2. Submit an Employment Certification Form — then repeat annually.
  3. Log in at StudentAid.gov and confirm your current repayment plan and its sunset date.
  4. Model RAP vs. IBR vs. Standard payments before any plan change.

Check your understanding

Select each question to reveal the answer.

✓ 120 qualifying monthly payments.
✓ Government agencies and 501(c)(3) nonprofits — including most training hospitals.
✓ A 1–10% of AGI sliding scale with a $10 monthly floor.
✓ By July 1, 2028 — then RAP or IBR.

Planning questions

  1. Are all of your loans Direct Loans, and is your employer PSLF-qualifying?
  2. Which repayment plan are you on today, and does your borrower status change your options?

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