Student loan repayment plans

{{whyLabel}}: This is the single source of truth for all your federal loans and current repayment status.

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• Log in to StudentAid.gov using your FSA ID.
• Navigate to 'My Aid' to see a breakdown of Subsidized, Unsubsidized, and PLUS loans.
• Identify your assigned loan servicer (e.g., MOHELA, Nelnet, Edfinancial).

{{doneWhenLabel}}: [You have a list of every federal loan, its balance, and its interest rate.]

{{whyLabel}}: Most modern repayment plans (like RAP and IBR) calculate monthly payments based on your AGI, not your total salary.

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• Locate your most recent federal tax return (Form 1040).
• Find the 'Adjusted Gross Income' line.
• Note your family size and number of dependents, as these provide discounts under the new 2026 RAP plan.

{{doneWhenLabel}}: [You have a confirmed AGI figure and dependent count.]

{{whyLabel}}: This plan typically saves the most money over time by minimizing total interest, provided you can afford the higher monthly payments.

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• Use a standard amortization calculator to find your fixed monthly payment.
• Note that for loans after July 2026, the term may vary from 10-25 years depending on balance.
• Calculate the 'Total Cost' (Monthly Payment x Number of Months).

{{doneWhenLabel}}: [You know the total interest cost of the Standard Plan.]

{{whyLabel}}: Launching July 1, 2026, RAP replaces SAVE and offers interest subsidies that can prevent your balance from growing.

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• Calculate 1% to 10% of your AGI based on your income bracket.
• Apply the $50/month discount for each dependent child.
• Factor in the 30-year forgiveness timeline (or 10 years for PSLF).

{{doneWhenLabel}}: [You have an estimated monthly payment and total cost under the RAP plan.]

{{whyLabel}}: If you work for a non-profit or government agency, PSLF is the fastest way to save money by forgiving the balance after 10 years tax-free.

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• Use the PSLF Help Tool on StudentAid.gov to verify your employer.
• Ensure your loans are 'Direct Loans' (consolidate if they are FFEL or Perkins).
• Confirm you are on a qualifying IDR plan (like RAP or IBR).

{{doneWhenLabel}}: [You have confirmed if PSLF is a viable path for your career.]

{{whyLabel}}: To save the most money, you must decide if it's cheaper to pay fast (Standard) or pay the minimum and wait for forgiveness (RAP/IBR).

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• Compare the 'Total Paid' from the Standard Plan against the 'Total Paid until Forgiveness' on RAP.
• Account for the 'Tax Bomb' (forgiveness is currently federally tax-free through 2025, but may be taxable later).
• Choose the plan with the lowest absolute dollar amount paid over the life of the loan.

{{doneWhenLabel}}: [A final decision is made on which plan to pursue.]

{{whyLabel}}: Older loan types (FFEL/Perkins) must be consolidated into a Direct Consolidation Loan to access RAP or PSLF.

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• Complete the Consolidation Application on StudentAid.gov.
• Select your preferred servicer during the process.
• Note that consolidation resets the weighted average interest rate (rounded up 1/8th percent).

{{doneWhenLabel}}: [Consolidation application is submitted.]

{{whyLabel}}: You must formally opt-in to plans like RAP or IBR to move away from the Standard Plan.

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• Submit the IDR application via StudentAid.gov.
• Link your IRS data for automatic income verification to simplify future years.
• Confirm the application is 'Pending' with your servicer.

{{doneWhenLabel}}: [IDR application is successfully submitted.]

{{whyLabel}}: Most servicers offer a small interest rate reduction for automatic payments, saving you money every month with zero effort.

{{howLabel}}:

• Log in to your specific servicer's website (e.g., Nelnet).
• Navigate to 'Payment Settings' and link your bank account.
• Verify that the 0.25% discount has been applied to your account view.

{{doneWhenLabel}}: [Auto-pay is active and the discount is visible.]

{{whyLabel}}: If you are on RAP or IBR, failing to recertify your income annually will cause your payments to spike to the Standard Plan amount.

{{howLabel}}:

• Set a calendar reminder for 11 months from your application date.
• Opt-in to 'Auto-Recertification' on StudentAid.gov if available.
• Keep a copy of your latest tax return ready for the update.

{{doneWhenLabel}}: [A recurring annual reminder is set in your digital calendar.]

{{whyLabel}}: If you have extra cash, paying down the loan with the highest interest rate first (Avalanche) saves the most money over time.

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• Identify the loan with the highest interest rate.
• Instruct your servicer to apply extra payments specifically to the 'Principal' of that loan.
• Do not just 'Pay Ahead' (which only covers future interest).

{{doneWhenLabel}}: [Extra payments are correctly targeted at the highest-interest principal.]