How to Change Your Student Loan Repayment Plan

If you’re having trouble making payments on your federal student loans, you can change your repayment plan to get a payment you can afford. If all of your federal loans were made before July 1, 2026, you can switch to any other plan you qualify for at any time. Taking out a new Direct Loan on or after that date closes the older income-driven plans — IBR, PAYE, and ICR — and narrows the choice to the Repayment Assistance Plan and the fixed Tiered Standard plan, which you can move between freely. Some private student loan lenders offer similar payment flexibility — at least temporarily. Contact your servicer or check your promissory note to discover the options you have to lower your monthly payments.

It makes sense to change plans if you need a lower monthly payment or want to qualify for loan forgiveness after 20-25 years of payments. But if you want to get rid of the interest that’s accrued on your loans, switching plans won’t help. It could make things worse. Leaving the IBR plan capitalizes your unpaid interest, increasing the amount you owe.*

Related: What Happens to Student Loans After 25 Years?

Keep reading to learn how to change repayment plans, when switching plans is right for you, and other ways to lower your student loan bill.

* Regulations that took effect July 1, 2023 eliminated interest capitalization in most situations, including at the end of a forbearance. What survived is the capitalization attached to IBR, because that one is written into the statute rather than the regulations: leaving IBR — or losing the income-based payment amount by missing your annual recertification — still capitalizes your unpaid interest. Moving between the other plans generally does not.

Switching your repayment plan is easy, and you can do it for free. Just follow these steps:

1. Find out what type of loans you have. Use the Federal Student Aid website, studentaid.gov, to see what kind of loans you have. If you have Parent PLUS Loans, Federal Perkins Loans, or loans made under the Federal Family Education Loan Program, you’ll need a Direct Consolidation Loan before those loans can use the Direct Loan repayment plans or earn PSLF credit. Note what a consolidation made on or after July 1, 2026 costs: the new loan is closed out of IBR, PAYE, and ICR, leaving the Repayment Assistance Plan — or, if it repays a Parent PLUS loan, only the fixed Tiered Standard plan. Read more about consolidation and student loan forgiveness.

2. Estimate your monthly payments. You can use the Education Department’s Loan Simulator to figure out how much your monthly payments would be under different repayment plans based on your adjusted gross income and family size. You’ll also be able to see how your payments will change over time and the amount of interest that will be added to your balance during the loan term.

3. Complete the paperwork. You’ll need to complete a request form to switch to an income-driven repayment plan like IBR or the Repayment Assistance Plan. You can apply online at studentaid.gov or submit a paper application to your servicer.

4. Follow-up with your servicer. Changing repayment plans can take a few weeks. Make sure you reach out to your student loan servicer to determine your payment amount and due date. And if you signed up for an IDR Plan, ask the servicer for your IDR recertification date. That’s the deadline for submitting updated income and family size information to your servicer to remain in your chosen plan.

FYI. Paying your loans back under an income-based plan like the Pay As You Earn or Income-Contingent Repayment Plan won’t lower your credit score. So long as you pay your bills on time, your score should increase throughout the repayment term.

Related: IDR Waiver Student Loans

Most federal student loan borrowers have five repayment options to choose from. Some base your monthly payment on your income and family size, while others have a fixed monthly payment. The best plan for you depends on your budget, how much you owe, and whether you want to qualify for loan forgiveness.

• You need a lower monthly payment. Choose an income-driven plan. For loans made before July 1, 2026 that means IBR, or PAYE and ICR while they last — both close on June 30, 2028. For anything borrowed on or after July 1, 2026, the income-driven plan is the Repayment Assistance Plan. REPAYE, later renamed SAVE, no longer exists.

• You’re retiring. Moving to a payment plan based on your discretionary income and family size can drop your bill to zero each month if your only source of money comes from Social Security benefits. Read more about student loan forgiveness for seniors.

• You have Parent PLUS Loans. A Parent PLUS loan can’t go on an income-driven plan directly — it has to be consolidated first. If you consolidated on or before June 30, 2026, that loan can enroll in ICR now, and one ICR payment is what makes it eligible for IBR, the lower payment and where it should be before ICR closes on June 30, 2028. Consolidate on or after July 1, 2026 and the new loan is shut out of every income-driven plan, including RAP, and is limited to the fixed Tiered Standard plan. Read more about Parent PLUS Loan forgiveness & retirement.

• You’re working on Public Service Loan Forgiveness. Sign up for an income-driven plan — IBR or RAP — and consolidate any Perkins or FFEL loans into a Direct Loan so they can earn credit. Qualifying PSLF payments made before a consolidation carry onto the new loan as a weighted average, but consolidating gives up the ability to buy back any month on the loans you fold in. Related: Should I consolidate my student loans for PSLF?

• You’re waiting for loan forgiveness after 20 years. Enroll in the best IDR Plan for your situation. Read more about student loan forgiveness after 20 years.

• You have a high income. Compare your payments under the Graduated or Extended Repayment Plan to what your bill would be under one of the IDR plans. Read more about IDR income limits.

• You’re worried about interest. Switch to the Standard Repayment Plan and pay your student loan debt as quickly as possible. Refinancing is another option — especially if you can score a lower interest rate. But if you refinance, you’ll lose federal benefits like debt cancellation, deferment, forbearance, and so on. Read more about how to refinance federal student loans.

Learn More: How to Reduce Student Loan Payments