Should You Switch IDR Plans in 2026?

If your income-driven repayment plan is ending or changing, you need to move to an active plan to keep earning forgiveness credit. Staying in a terminated or sunsetting plan pauses your progress.

• SAVE is gone. The One Big Beautiful Bill Act terminated SAVE, and a federal court vacated the SAVE Final Rule on March 10, 2026. You must switch.

• PAYE and ICR are sunsetting. Both close permanently on July 1, 2028. You have time, but a deadline.

• Switching does not reset forgiveness. Prior qualifying months carry over when you change IDR plans.

• IBR and RAP are the durable options. IBR remains open now. RAP launches July 1, 2026.

Three of the four income-driven repayment plans are gone or winding down.

SAVE no longer exists. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, eliminated SAVE by statute. On March 10, 2026, a federal court vacated the SAVE Final Rule, ending the plan ahead of the OBBBA’s July 1, 2028, statutory deadline. Borrowers still in SAVE administrative forbearance must move to another plan.

PAYE and ICR sunset on July 1, 2028. Under the OBBBA, both plans close to new enrollments on July 1, 2028, and borrowers still enrolled at that date will be transitioned to IBR or the Repayment Assistance Plan (RAP). Existing PAYE and ICR borrowers can remain until then, earning forgiveness and PSLF credit.

IBR stays open indefinitely. IBR has separate statutory authority and was not affected by the SAVE litigation or the OBBBA phase-out. It remains available for new enrollments.

RAP launches July 1, 2026. Borrowers with loans first disbursed on or after July 1, 2026, can only enroll in RAP. Existing borrowers may switch to RAP voluntarily.

Switching IDR plans only matters when your current plan can no longer process payments and forgiveness credit.

If you’re in SAVE: You need to switch. Loans in SAVE administrative forbearance are not accruing qualifying payment credit. Switching to IBR (available now) or RAP (available July 1, 2026) restores active repayment and forgiveness credit.

If you’re in PAYE: Your plan is still active and processing payments and forgiveness credit. You can remain in PAYE until July 1, 2028. Switching before then is optional — it may make sense if another plan offers a lower payment or if you prefer a plan that isn’t sunsetting. If you stay, you’ll be transitioned to IBR or RAP when PAYE closes.

If you’re in ICR: Same as PAYE — ICR remains active until July 1, 2028. ICR payments are often higher, so some borrowers switch to IBR before the deadline.

If you’re choosing a plan for the first time: For loans disbursed before July 1, 2026, IBR is the most durable income-driven option. For loans first disbursed on or after July 1, 2026, RAP is the only income-driven plan available.

No. Switching between income-driven repayment plans does not reset your forgiveness progress.

Qualifying months earned under SAVE, PAYE, IBR, or ICR all count toward the 20- or 25-year IDR forgiveness timeline. When you switch plans, those months carry over. If you made 150 qualifying payments under PAYE and switch to IBR, those 150 payments count toward IBR’s forgiveness threshold.

Temporary gaps in your payment tracker are processing delays, not lost credit. Servicer portals may briefly show zero counts during a plan change, but prior months are restored once processing finishes.

Consolidation is different. A Direct Consolidation Loan replaces the original loan with a new one, which historically reset payment counts. The one-time IDR account adjustment restored credit for borrowers who consolidated and met federal deadlines, but that adjustment has ended.

Related: PAYE vs REPAYE: Which IDR Plan Is Better?

IBR, PAYE, and ICR all qualify for Public Service Loan Forgiveness. Changing which of these plans you’re in does not reset your PSLF payment count — servicers update the count once the new plan is active.

SAVE payments also counted toward PSLF while the plan existed — those months still apply after you switch.

Apply at StudentAid.gov/idr. Select your plan — IBR, PAYE, or ICR — based on eligibility. A paper application is available on your servicer’s website or directly from Federal Student Aid.

1. Submit an IDR application. Select the plan you want to move into. If you’re unsure which plan fits, see the PAYE vs IBR comparison.

2. Authorize IRS income data. Applications using IRS data typically process within a few business days. Manual uploads take longer.

3. Wait for plan activation. Your servicer may place your account in processing forbearance while the application is reviewed. Those forbearance months can count toward IDR forgiveness once the plan change is finalized. Once approved, your servicer updates your repayment plan and monthly payment. During processing, some portals temporarily label the plan as “IDR” before the final plan name appears.

4. Save confirmation records. Keep a copy of your application confirmation and updated loan summary. These records help resolve disputes about payment amounts or qualifying credit.

The first hard deadline is July 1, 2028 — when PAYE and ICR close permanently. But SAVE borrowers face a practical deadline now: every month in administrative forbearance is a month without qualifying payment credit.

• Now through June 30, 2026: SAVE borrowers in administrative forbearance can switch to IBR. No deadline forces the move, but forbearance months earn no qualifying credit.

• July 1, 2026: RAP becomes available as an additional option alongside IBR. SAVE borrowers who haven’t switched yet gain a second income-driven plan to choose from.

• July 1, 2028: PAYE and ICR sunset permanently. Borrowers still in those plans are transitioned to IBR or RAP. After this date, the only income-driven plans are IBR and RAP.