Student Loan Management Transitioning in 2026
Special thanks to Zachary Smith from AccessLex for joining us to discuss upcoming federal student loan changes for the 2026–2027 academic year following recent legislative updates.
You can also listen to this episode on Spotify, SoundCloud, or Apple Podcasts.
The New Tiered Standard Plan for Federal Loan Repayment
Federal student loans disbursed on or after July 1, 2026 will be repaid under the new Tiered Standard Plan. Repayment term length is based on your total outstanding Direct Loan principal balance when you enter repayment.
| Total Principal Balance | Repayment Term |
|---|
| Less than $25,000 | 10 years |
| $25,000 – $49,999 | 15 years |
| $50,000 – $99,999 | 20 years |
| $100,000 or more | 25 years |
Key Details
- Who it applies to: Borrowers with any federal Direct Loan disbursed on or after July 1, 2026 — including their older loans.
- How the term is set: Your repayment length (10–25 years) is based on your total outstanding balance when you enter repayment.
- Replaces the old Standard Plan: The previous flat 10-year Standard Plan will no longer be available once you have a loan disbursed after July 1, 2026.
- New law: Created under President Trump's Working Families Tax Cuts Act (signed July 4, 2025) and finalized in the RISE Rule (April 30, 2026).
- Effective date: July 1, 2026.
Sources: Massachusetts AG – The New Tiered Standard Plan | U.S. Department of Education – RISE Final Rule (April 30, 2026)
Recent Webinars and Prior Student Loan Episode
Tools
Resources for Private Student Loans and General Loan Management
Additional References
