By 
The Tiered Standard Plan is a new fixed-term federal repayment plan that opens July 1, 2026, giving you a 10, 15, 20, or 25-year payoff term based on your total loan balance. It is not income-driven, so your payment is not tied to what you earn, there is no annual income check, and there is no forgiveness at the end. It is also one of the two plans you can be auto-enrolled into if you do nothing after the SAVE plan ends.
What is the Tiered Standard Plan?
The Tiered Standard Plan sets a fixed repayment term by how much you owe, then splits your balance plus interest into level payments across that term. Larger balances get longer terms and lower monthly payments. Because it is not income-driven, it does not recertify your income each year and does not offer income-driven forgiveness, according to the U.S. Department of Education.
Key Takeaways
- Fixed term of 10 to 25 years, set by your total balance.
- Not income-driven: no income recertification, no payment based on earnings.
- No forgiveness at the end, and it does not count toward PSLF.
- Predictable payments that do not change as your income changes.
- Auto-enrollment default: you can land here if you do not pick a plan in time.
How are the Tiered Standard terms set by balance?
Your term depends on your total outstanding Direct Loan principal balance when you enter repayment. The brackets are straightforward.
| Total 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 |
A longer term lowers the monthly payment but means more interest paid over the life of the loan. Confirm your balance and term at studentaid.gov.
How is the Tiered Standard Plan different from an income-driven plan?
The core difference is what sets your payment. An income-driven plan like RAP or IBR ties your payment to your income and can forgive the remaining balance after a set number of years. The Tiered Standard Plan ignores your income and instead spreads your balance over a fixed term, with no forgiveness at the end.
That makes it predictable, which some borrowers prefer, but it removes the safety net that income-driven plans give when money is tight. If your income drops, a Tiered Standard payment does not drop with it.
Does the Tiered Standard Plan count toward PSLF?
No. The Tiered Standard Plan does not count toward Public Service Loan Forgiveness. If you work in public service and are pursuing PSLF, you need an income-driven plan such as RAP or IBR instead. See PSLF in 2026 for the qualifying plans, and compare the income-driven options in RAP vs IBR.
Who is the Tiered Standard Plan best for?
It tends to suit borrowers with stable, comfortable incomes who are not chasing forgiveness and want a fixed payoff date with predictable payments. If you can afford the fixed payment and you value simplicity over income protection, it can be a clean way to clear the debt on a set schedule.
It is usually a weaker fit for lower earners, anyone whose income might drop, and anyone pursuing PSLF or income-driven forgiveness, since it offers no income flexibility and no forgiveness.
What if I get auto-enrolled in it?
If you are in SAVE and do not choose a plan within your roughly 90-day window after July 1, 2026, your servicer can auto-enroll you in the Standard or Tiered Standard Plan. That keeps you out of default, but it may not be your cheapest option and it will not count toward forgiveness or PSLF. It is worth checking what you would be placed in before the deadline. We cover this in what happens if you do nothing and how to choose actively in our studentaid.gov walkthrough.
Frequently asked questions
Is the Tiered Standard Plan the same as the old Standard Plan?
They are similar in being fixed-term and not income-driven, but the Tiered Standard Plan specifically sets your term (10 to 25 years) by your balance. The traditional Standard Plan is typically a 10-year term. Both are non-income-driven.
Will my payment ever change on this plan?
Your payment stays level for the term in most cases, since it is not tied to income. It does not rise or fall with your earnings, which is the main appeal for borrowers who want predictability.
Can I switch from Tiered Standard to RAP later?
Borrowers can generally move between plans, but the details depend on your loans. If you were auto-enrolled and want income-driven repayment or PSLF credit, check switching options at studentaid.gov.
Does this plan forgive any balance?
No. The Tiered Standard Plan has no forgiveness. You pay the balance plus interest over the fixed term. For forgiveness, you need an income-driven plan.
Which gives a lower monthly payment, Tiered Standard or RAP?
For lower earners, an income-driven plan like RAP is usually lower. For higher earners, the answer varies, so compare both at studentaid.gov before deciding.
Bottom line: the Tiered Standard Plan gives predictable, fixed payments over a 10 to 25-year term set by your balance, with no income test and no forgiveness. It suits comfortable earners who want a set payoff date, but lower earners and PSLF seekers are usually better served by RAP or IBR.
For the full set of July 1 changes, start at our hub on student loan changes in 2026.
A quick note: this guide is here to help you understand your options, not to act as personal financial, legal, or tax advice. Repayment plan rules and dates come from the U.S. Department of Education and can change over time, so it is always worth checking your own numbers and deadlines at studentaid.gov or with your loan servicer before you make a move.
