Which IDR Plan Am I Eligible For?

👇 Start Here: Use The IDR Plan Finder

Before you read through every detail, start with a quick eligibility check.

Drop your information into the IDR Plan Finder and see which plans you may qualify for based on:

• • When you first borrowed

  • Your current loans

  • Whether you are a new borrower or an existing borrower under the new rules

Big Picture – What Are IDR Plans Actually Trying To Do?

Income-Driven Repayment (IDR) plans are designed to tie your federal student loan payments to your income rather than just your balance and interest rate.

Instead of automatically dropping you into the 10-Year Standard Repayment plan, IDR plans:

• • Look at your income

  • Look at some version of your family or dependents

  • Set your payment as a percentage of that income

If you work for a nonprofit or government employer and are pursuing Public Service Loan Forgiveness, being in the right IDR plan is important. It is what makes those 120 qualifying payments affordable early in your career.

This page is not about calculating the exact payment. It is about which plans you can use at all.

Want to see what your payment might be? Click here to find out

Which Income-Driven Repayment Plans Currently Exist?

Which Income-Driven Repayment Plans Currently Exist?

There are a lot of repayment plan names floating around, and many of them are going away.

But for most medical students, residents, and early-career physicians, there are three Income-Driven Repayment plans worth understanding.

Think of this as a high-level overview.

Once you know which plans you may qualify for, the calculator can handle the math.

PAYE – Pay As You Earn

Status

• • Closed to new borrowers starting July 1, 2026

  • Fully phased out for many existing borrowers by July 2028

Eligibility

You must meet both:

• • Your first federal student loan was taken out on or after October 1, 2007

  • You borrowed at least one additional loan on or after October 1, 2011

If those dates don’t match your borrowing history, PAYE is not available.

Calculation

• • Payment is 10 percent of discretionary income

  • Uses full family size: you, your spouse, children, and anyone you financially support

  • Monthly payment is capped at the 10-Year Standard Repayment amount

  • Forgiveness after 20 years
    (This timeline doesn’t matter if you’re pursuing PSLF since forgiveness happens after 120 qualifying payments.)

When PAYE Can Be Helpful

PAYE can be especially helpful if you are pursuing Public Service Loan Forgiveness and expect a high attending income. The payment cap prevents your payments from rising beyond the 10-Year Standard Repayment amount.

Note: Since PAYE is being phased out by July 2028, you’ll need to choose a new repayment plan before that deadline. More guidance will likely be released as we get closer.

Click here to learn more about PAYE!

New IBR – New Income-Based Repayment

Status

• • Closed to new borrowers starting July 1, 2026

  • Existing borrowers already in New IBR may remain enrolled

Eligibility

You qualify if you borrowed your first federal student loan on or after July 1, 2014.

Calculation

• • Payment is 10 percent of discretionary income

  • Uses full household size

  • Monthly payment is capped at the 10-Year Standard Repayment amount

  • Forgiveness after 20 years
    (Again, this timeframe isn’t relevant if pursuing PSLF.)

When New IBR Can Be Helpful

New IBR offers similar benefits to PAYE and works well when PAYE isn’t available. Like PAYE, the payment cap can be helpful for high earners planning on PSLF.

Click here to learn more about New IBR!

Old IBR – Old Income-Based Repayment

Status

• • Closed to new borrowers starting July 1, 2026

  • Existing borrowers already in Old IBR may remain enrolled

Eligibility

You qualify if you borrowed your first federal student loan before July 1, 2014.

Calculation

• • Payment is 15 percent of discretionary income

  • Uses full household size

  • Monthly payment is capped at the 10-Year Standard Repayment amount

  • Forgiveness after 25 years
    (Not relevant if you’re pursuing PSLF.)

When Old IBR Can Be Helpful

Old IBR is less generous than New IBR or PAYE but still offers the valuable payment cap, which can limit payments during high earning years for PSLF-bound borrowers.

Click here to learn more about Old IBR!

RAP – Repayment Assistance Plan

Status

• • Will be the only Income-Driven Repayment plan available to borrowers who take out their first federal loan on or after July 1, 2026

  • Existing borrowers (who took all loans before that date) may still use PAYE or IBR if eligible

Eligibility

You’re considered a “new borrower” if you take out your first federal student loan on or after July 1, 2026.
Existing borrowers may choose RAP if it makes sense.

Calculation

• • Payment is based on Adjusted Gross Income (AGI)

  • Sliding scale: 1 percent to 10 percent of AGI

  • Subtraction for each dependent child under age 17

  • Uses dependent children only, not full household size

  • No negative amortization

  • No payment cap

  • Forgiveness after 30 years
    (This timeframe doesn’t matter if pursuing PSLF, since forgiveness occurs after 120 qualifying payments.)

When RAP Can Be Helpful

RAP can be useful early in training because payments are low and your balance won’t grow.
The tradeoff: without a payment cap, payments may become significantly higher later on for high-earning physicians pursuing PSLF.

Click here to learn more about RAP!

New Borrower vs Existing Borrower – Why The Date Matters

The rules around IDR change based on whether you are a “new borrower” under the RAP rules.

New borrower

• • You take out your first federal student loan on or after July 1, 2026

Existing borrower

• • You took out at least one federal student loan before July 1, 2026

  • You do not take out any new federal loans after that date

Why this matters:

• • New borrowers will have RAP as their main IDR option going forward

  • Existing borrowers may still have access to IBR and possibly PAYE along with RAP

  • If you are already in PAYE and eligible, that plan will eventually be phased out and you will need to choose between IBR and RAP when it is

If you are not sure which bucket you fall into, the IDR Plan Finder can help you sort it out.

Common IDR Eligibility Questions (Answered Simply)

Common IDR Eligibility Questions (Answered Simply)

Not sure which plans you qualify for? These common questions will point you in the right direction.

Am I a New Borrower If I Already Have Loans And Take Out One More After July 1, 2026?

Yes.

Even if you have a long history of federal borrowing, taking out any new federal loan on or after July 1, 2026 will put you in the new borrower category for future plan access.

That means:

• • You will still have your old loans

  • You will still have your existing payment history

  • But your access to older plans like PAYE and IBR can change, and RAP becomes the default path going forward

If you are in medical school now and know you will need more loans after that date, this is something worth planning around.

If I Consolidate My Loans, Do I Become A New Borrower Under RAP?

No.

Consolidation creates a new Direct Consolidation Loan, but it does not make you a new borrower under the July 1, 2026 rules.

Your “new or existing borrower” status is based on when you borrowed your loans, not whether you later consolidated.

Does IBR, PAYE, Or RAP Matter For PSLF Eligibility?

All three plans are eligible for Public Service Loan Forgiveness as long as you meet the other PSLF rules.

The main difference is not whether the payments count.

The difference is:

• • How low your payments can be early in your career

  • Whether there is a payment cap later on

  • How the total amount you pay over 10 or more years compares under each plan

If you are PSLF bound and expecting a high attending income, that payment cap in PAYE or IBR can be a very big deal. RAP does not have that cap.

If I Am Married, Does My Partner’s Income Change Which Plans I Am Eligible For?

No…

Being married does not change your basic eligibility for a plan, but it can change how that plan calculates your payment.

• • PAYE and IBR use a discretionary income formula that usually includes your spouse if you file taxes jointly

  • Some strategies involve filing separately so your spouse’s income is not included, which can lower your payment but raise your tax bill

  • RAP uses AGI and a child deduction, so the way your income shows up on your return matters here as well

This is an area where running numbers in a calculator and talking with a tax or student loan specialist before you file can save you a lot of money.

Want to see how filing jointly or separately affects your payment? Try the Married Couples Student Loan Calculator

Understanding RAP – Pros And Cons

What is great about RAP?

• • No negative amortization. Your balance does not grow if your payment is lower than the interest

  • Uses your AGI, which can be lower than your gross income when you are saving for retirement or pre tax benefits

  • Gives lower payments early in your career when your income is low

Example:

• • You owe 250,000 at 6 percent

  • Your 10-Year Standard payment is about 2,777 per month

  • As a resident earning 60,000, your RAP payment might be a few hundred dollars per month instead

Under older plans like PAYE and IBR, the unpaid interest would be added to your balance each month. Under RAP, that unpaid interest does not pile up on top of your balance.

Why that is not the whole story

If you are pursuing PSLF, the size of your balance at the end often does not matter. The remaining balance is forgiven tax free after 120 qualifying payments.

So choosing RAP just to avoid seeing your balance grow might actually cost you more if it leads to much higher payments later.

What is the catch with RAP?

• • There is no payment cap

  • As your income climbs, your RAP payment can keep increasing

  • A high earning attending could see RAP payments that are much higher than the 10-Year Standard amount

PAYE and IBR put a ceiling on your payment. Once your income is high enough, your payment flattens out at the standard amount.

RAP does not have that ceiling.

For a high earning specialist who is pursuing PSLF, this can mean paying significantly more over the full 10 years compared with PAYE or IBR, even though both paths lead to forgiveness at the end.

Caution For Current Students Borrowing After July 1, 2026

Caution For Current Medical Students

If you are still in medical school and know you will need to borrow after July 1, 2026, there is an extra wrinkle to think about.

Once you take out any federal loan after that date:

• • You lose access to some of the older IDR plans for that new borrowing

  • Your future options tilt more heavily toward RAP

  • You may not be able to use PAYE at all, and your IBR access could be limited

Why this matters:

• • Older plans like PAYE and IBR use discretionary income and have a payment cap

  • RAP does not have a payment cap

  • If you expect to end up in a very high income specialty and plan to use PSLF, paying under a plan without a cap could mean a much higher total out of pocket cost over those 120 payments

In some situations, it might be worth comparing:

• • Taking out more federal loans after July 1, 2026 and living fully in the RAP world

versus

• • Taking out private loans for your final semesters, preserving your “existing borrower” status for your current federal loans

This is not a blanket recommendation to choose private loans. Federal loans come with protections and forgiveness programs that private loans do not.

The point is this:

If you are still in school, expect to borrow more after July 1, 2026, and think you may become a high earning specialist using PSLF, it is worth doing a deeper dive before you sign new federal loan paperwork.

Talking with a student loan specialist or financial planner who understands the new rules can help you weigh the tradeoffs for your specific path.

What To Do Next

Step 1 – Run The IDR Plan Finder

See which plans you may be eligible for based on your borrowing history.

Step 2 – If You Are PSLF Bound, Map Your Path

Especially if you expect a high income later, compare:

• • PAYE vs IBR vs RAP over the full PSLF timeline

  • How each plan treats your income and family

Step 3 – If You Are Still In School, Plan Before You Borrow More

If July 1, 2026 or later borrowing is part of your future, make it a conscious decision rather than an accident.

Want Help Double Checking Your Plan?

Most people can get pretty far on their own using this guide and the IDR Plan Finder Calculator. But if you’d rather talk things through with someone who lives and breathes this stuff, here’s a simple way to decide what level of support makes sense.

If any of these sound like you, a one time review is probably enough:

• • You feel mostly confident but want a second set of eyes

  • You want help choosing the right repayment plan

  • You just want to make sure you are not missing something

If these sound more like you, ongoing support usually makes sense:

• • You plan to pursue PSLF and want help each year

  • You do not want to deal with annual forms, servicer changes, or payment recertification

  • You want someone in your corner while you are busy being a doctor

Choose the option that fits where you are right now.

No wrong choice here… Pick the path that fits you today. You can always upgrade later if you want more support.

Disclosure: This content is for informational purposes only and does not constitute personalized financial, tax, or student loan advice. Student loan programs and repayment rules change frequently, and while I strive to keep this page up to date, I can’t guarantee accuracy at all times. Please consult your tax or financial professional for guidance specific to your situation.

Michael Putterman, CFP®

☁  Virtually serving clients nationwide  ☁

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