Loan Repayment Options

There are several repayment options for federal loans. If you find your monthly payment does not fit within your monthly budget, contact your lender or servicer to discuss your options. Once you have selected the right repayment plan for you, signing up for auto-debit from your checking account may save you money by lowering your interest rate. All borrowers have certain rights and responsibilities in repaying their student loans. If for some reason you need to postpone payment, it is important that you contact your lender or servicer immediately to discuss your options.

Types of Repayment Plans

For Loans Disbursed prior to June 30, 2026

For Loans Disbursed on or After July 1, 2026

If you take out new federal student loans (Stafford/Subsidized/Unsubsidized) on or after July 1, 2026, your repayment choices are limited to two options:

  1. New Standard Repayment Plan
    • Fixed monthly payments based on your total loan balance.
    • Repayment terms generally range from 10 to 25 years, depending on your debt:
      • Less than $25,000 → ~10-year term
      • $25,000-$49,999 → ~15 years
      • $50,000-$99,999 → ~20 years
      • $100,000+ → ~25 years
    • Payments are not tied to your income.
  2. Repayment Assistance Plan (RAP) — New Income-Driven Plan
    This is the new income-driven repayment option created under the law and will be the only income-based plan for new borrowers:
    • Monthly payment based on Adjusted Gross Income (AGI) with a sliding scale (1 %–10 % of income).
    • A minimum monthly payment of $10 for lowest earners.
    • Federal government may reduce the effective payment amount if it doesn’t cut principal by enough each month.
    • Unpaid interest does not get added to your balance (no negative amortization).
      • Loan forgiveness after 30 years of qualifying payments.
      • Your payment may be adjusted for dependents (e.g., $50 reduction per dependent).

Note: If you don’t actively choose between these two plans, you may be automatically placed into the standard plan.

Loan Repayment/Forgiveness Programs

These programs give you the opportunity to pay down loan balances in exchange for service. Please check the following websites for additional information:

State Loan Forgiveness Programs

Government Loan Forgiveness Programs

  • Indian Health Service (IHS) Loan Repayment Program: The IHS Loan Repayment Program awards up to $40,000 for repayment of student loans in exchange for a two-year commitment to practice in health facilities serving American Indian and Alaska Native communities.
  • National Institute on Minority Health and Health Disparities: Participants are offered loan repayment to develop research programs that reflect an understanding of the variety of issues and problems associated with disparities in health status.
  • National Health Service Corps (NHSC) Loan Repayment Program: The NHSC offers up to $50,000 toward loan repayment for licensed health care providers in exchange for two years of service at an approved site.
  • Public Service Loan Forgiveness (PSLF) Program: The PSLF Program forgives the remaining balance on an individual’s Direct Loans after he or she has made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a government or not-for-profit organization. If you plan to enter this program, be sure that you have accurately researched requirements and eligibility for PSLF. There are strict guidelines regarding which payments qualify for forgiveness, and proper documentation is essential.
  • U.S. Department of Health and Human Services Health Resources and Services Administration Primary Care Loans: Primary care loan programs provide long-term, low-interest loans to full-time, financial-needs students to pursue a degree in allopathic or osteopathic medicine. Students must enter and complete residency training in primary care within four years after graduation, and practice in primary care for the life of the loan. See the AAMC directory of state loan repayment programs that have active programs.

Armed Forces Health Professions Scholarship Programs

Fully-trained clinicians are eligible for loan repayment in exchange for service in an eligible community. Contact a recruiter at the branch of service that interests you for more information.