Important Announcements

Starting on July 1, 2026, the interest rate reduction for borrowers enrolled in auto pay will go from 0.25% to 1%. This reduction is available to borrowers with Direct Loans disbursed on or after July 1st, 2012. Visit StudentAid.gov to learn more and enroll by 11:59 p.m. ET on Sept. 30, 2026, to receive the temporary benefit through June 30, 2028.

On March 10, 2026, a court order ended the Saving on a Valuable Education (SAVE) Plan. The U.S. Department of Education will contact impacted borrowers, who can explore and apply for other repayment plans. For more information, visit StudentAid.gov/courtactions.

On Oct. 30, 2025, the U.S. Department of Education published final Public Service Loan Forgiveness (PSLF) program regulations that will be effective on July 1, 2026. We'll provide updates when the regulations are implemented. For now, there are no impacts to borrowers, payment counts, or discharges.

Visit StudentAid.gov/publicservice for more information about PSLF and current program requirements.

For more information about employer eligibility, visit StudentAid.gov/pslf/employer-search.

To apply for PSLF, use the PSLF Help Tool at StudentAid.gov/pslf.

Important Update

Repayment Plan Changes Starting July 1, 2026

The newest repayment plans—the Repayment Assistance Plan (RAP) and Tiered Standard Plan—are available effective July 1, 2026. Visit StudentAid.gov/bigupdates to learn more about these new repayment plans and other changes to the federal student aid programs. To apply, visit Studentaid.gov/repayment-calculator.

SAVE Plan is Ending

Borrowers who enrolled in or applied for the Saving on a Valuable Education (SAVE) Plan and have loans in forbearance must select a new repayment plan after receiving a notice from MOHELA. No need to call! For a quick and easy path to change plans or explore your options, log in to your Studentaid.gov account, and use the Repayment Calculator. For more information, visit our FAQ page.

Agents can't process IDR plans

If you are calling MOHELA to request an income-driven repayment plan including the new RAP plan, please know that our phone agents cannot sign you up for those plans. Visit Studentaid.gov/IDR to apply today.

If you've recently submitted an application on Studentaid.gov, it may take up to a few days for MOHELA to receive your application. You will be notified once your application is processed. Thank you for your patience.

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Important Announcements Contact Us

Income-Driven Repayment (IDR) Plans

What to know about IDR Plans

IDR plans may offer lower payments because they are based on your income and family size.

IDR plans include:

  • Pay As You Earn (PAYE)

  • Income-Based Repayment (IBR)

  • Income-Contingent Repayment (ICR)

  • Repayment Assistance Plan (RAP)

These repayment plans are unique

  • Eligibility - Based on income, family size, your loan balances, and the types of federal student loans you have.

  • Annual Renewal - IDR plans are approved for 12 months. Even if your income or family size is the same, you are still required to recertify your IDR plan annually.

  • Annual Proof of Income - Income documentation must be provided with your annual recertification. If you don't have income documentation to provide with your IDR application, you can request your tax transcript   this link will open in a new window at irs.gov.

  • Loan forgiveness opportunity - After you make 20-30 years of qualifying payments, your remaining loan balance(s) may be forgiven. These repayment plans also qualify for Public Service Loan Forgiveness (PSLF). To view your monthly payments that count toward IDR forgiveness, visit StudentAid.gov   this link will open in a new window .

  • Interest subsidy - RAP, IBR, and PAYE offer interest subsidies for some or all of your loans.

  • Paying Ahead – If your loans are paid ahead when you start or renew an IDR plan, the paid ahead status will be removed when your IDR plan is processed. This will be reflected on your disclosure statement. You can continue to pay your loans ahead, but only through the anniversary date of the IDR plan.

Interest Subsidies (Paid by the Government)

The government may pay the interest that is not satisfied by your calculated IDR monthly payment. The amount paid by the government depends on the repayment plan, the loan type, and may depend on the length of time on the plan.

RAP*

Subsidized loans

  • Principal and interest payment matching may be available, depending upon payment and loan amount.

PAYE*

Subsidized loans

  • No interest benefit as of August 9, 2024.

IBR*

Subsidized loans

  • 100% for the first 3 consecutive years

* The 36-month period of up to 100% subsidy is not refreshed when switching between IDR plans.

Learn more about IDR Plans

The Department of Education has additional information about the repayment plans   this link will open in a new window and the eligibility requirements for each.

Importance of Annual Renewal of IDR

When it is time to renew, you will be sent a notification. To complete the renewal, you must submit a new IDR application to recertify your income and family size, along with any required income documentation. Even if your information has not changed, you are still required to complete the annual renewal to retain an income-driven monthly payment amount.

What will happen if I don't renew IDR by the annual deadline?

If the annual renewal is not received on time, your monthly payment amount may increase significantly and unpaid interest may be added to the principal balance of your loans {capitalized). You may find more information at studentaid.gov.

Under PAYE, IBR, RAP, or ICR plan, if you do not certify your IDR plan on time you’ll remain on the same plan, but your monthly payment will no longer be based on your income and instead change to the amount you would pay under a Standard 10-year repayment plan.