If you’re struggling to make your federal student loan payments this year, the U.S. Department of Education and Federal Student Aid (FSA) offer several official options to help prevent default, reduce monthly costs, or potentially reduce the total amount you have to repay. These aren’t scams, they’re established programs and strategies that eligible borrowers can use right now to manage their debt responsibly and protect their financial future.
Under current rules, choosing the right approach depends on your income, loan status, and long-term goals, and while default enforcement (like wage garnishment) is being temporarily paused to give borrowers more time to adjust, it’s still important to act and explore your options.
Why It Matters in 2026?
Because federal policy has shifted significantly in recent years, some programs (like SAVE and other income-driven plans) are evolving, and enrollment is changing. Meanwhile, the Education Department has temporarily delayed involuntary collections such as wage garnishment and tax refund offsets to give borrowers time to explore repayment reforms and restructure loans.
“The Department is committed to providing clearer and more affordable repayment options,” said an Education Department spokesperson. “This temporary pause on certain collections gives borrowers additional time to evaluate these options and regain good standing.”
Overview of Real Options: If You Can’t Make Payments in 2026
| Option | How It Helps You | Who It’s Best For |
|---|---|---|
| Income-Driven Repayment (IDR) | Caps monthly payments based on income, potential forgiveness after 20–25 years | Borrowers with low income or high debt relative to earnings |
| Repayment Assistance Plan (RAP) | New income-based plan starting mid-2026, potentially lower payments | Borrowers after July 1, 2026 |
| Standard / Fixed Plans | Predictable monthly payments | Borrowers with steady incomes |
| Loan Rehabilitation | Removes default status and restores eligibility for aid | Borrowers in default |
| Loan Consolidation | Combines multiple loans, may lower monthly payments | Borrowers with multiple federal loans |
| Public Service Loan Forgiveness (PSLF) | Forgives remaining balance after qualifying payments | Public service or nonprofit workers |
| School-Related Discharge | Discharges loans if school violated rules or closed | Forgives the remaining balance after qualifying payments |
1. Income-Driven Repayment (IDR) Plans
IDR plans adjust your monthly payment based on income and family size, often reducing your payment to an affordable level, and for many borrowers, payments can be as low as $0 per month. Remaining balances may be eligible for forgiveness after 20–25 years of qualifying payments.
Current IDR options that borrowers can still enroll in for loans disbursed before July 1, 2026, include:
- Pay As You Earn (PAYE)
- Income-Based Repayment (IBR)
- Income-Contingent Repayment (ICR)
- Saving on a Valuable Education (SAVE)
However, these are being phased out for new loans after July 1, 2026, and borrowers will ultimately transition to the new Repayment Assistance Plan (RAP) by 2028.
Tip: Use the FSA Loan Simulator at StudentAid.gov to compare plans and estimate monthly payments under each option.
2. Repayment Assistance Plan (RAP): Coming July 1, 2026
A key change under federal policy in 2026 is the rollout of the Repayment Assistance Plan (RAP), which will eventually replace older income-driven plans for new loans disbursed on or after July 1, 2026. The RAP is designed to:
- Base monthly payments on income and family size
- Potentially allow payments as low as $10 per month
- Provide a path to forgiveness after extended payments (possibly up to 30 years)
Borrowers with loans from before July 1, 2026, will be eligible to transition into RAP over time, especially if they are currently enrolled in older IDR programs that are being removed by 2028.
3. Standard and Fixed Repayment Plans
If you’re able to make regular payments but find income-driven plans less suitable, the Standard Repayment Plan offers fixed monthly payments over 10 to 25 years. Graduated and extended versions also exist, spreading payments over longer periods to lower monthly costs.
This may be best for borrowers with stable income who can commit to predictable payments.
4. Loan Rehabilitation: Exit Default
If your loan is in default, you can pursue loan rehabilitation, a process that:
- Brings your loan out of default by making a series of scheduled payments
- Restores eligibility for federal aid
- Removes the default from your credit report if you successfully complete the program
Rehabilitation gives borrowers a way to regain good standing without enduring continuing collection actions.
5. Loan Consolidation
Consolidation allows you to combine multiple federal loans into a single loan, often with a longer repayment term and potentially lower monthly payments. It can also help make you eligible for certain repayment or forgiveness programs that you weren’t eligible for before.
Keep in mind, consolidation doesn’t erase debt; it restructures it.
6. Public Service Loan Forgiveness (PSLF)
If you work full-time for a government agency or qualifying nonprofit, you may be eligible for PSLF, which forgives the remaining balance after you make 120 qualifying monthly payments under an eligible repayment plan.
Note: Processing delays and administrative backlogs have slowed approvals for some borrowers, so it’s important to track your qualifying payments closely and use the PSLF Help Tool on StudentAid.gov.
7. School-Related and Other Discharge Options
In specific situations, you might qualify for discharge or partial forgiveness through:
- Borrower defense to repayment (if your school misled you)
- Closed school discharge (if your school shut down unexpectedly)
- Total and Permanent Disability (TPD) discharge
- Teacher Loan Forgiveness for qualifying educators
Important Things to Know
- Act early. Contact your loan servicer before missing payments to explore these options.
- Avoid scams. Federal programs like IDR and PSLF do not charge fees to apply, if someone asks for money, treat it as a red flag.
- Stay informed. Repayment rules are changing in 2026, so check StudentAid.gov regularly for updates, especially around the rollout of RAP.
Final Thoughts
Struggling to pay your federal student loans in 2026 doesn’t mean you’re out of options. From income-based plans and the new RAP program to forgiveness and rehabilitation, Federal Student Aid provides multiple paths to manage your debt without default. The key is to reach out early to your loan servicer, explore the choices that apply to your situation, and stay informed as repayment policies evolve throughout the year.
Frequently Asked Questions
Can I lower my monthly payment if I lose my job?
Yes, income-driven plans or RAP can reduce your payment based on your current income and family size.
What happens if my loan is in default?
You can pursue loan rehabilitation to fix your default status and stop many collection consequences.
Are all forgiveness programs still available?
Yes, forgiveness programs like PSLF remain available but may have processing delays.
Does consolidation erase my debt?
No, consolidation combines loans into one but does not reduce the total amount owed.
Do I need to reapply for repayment assistance each year?
Yes, for income-based options like IDR or RAP, you must update your income and family information annually.
