The Tiered Standard plan gives fixed monthly payments over a term set by your total Direct Loan principal when you enter repayment: 10 years under $25,000, 15 years for $25,000–$49,999, 20 years for $50,000–$99,999 and 25 years for $100,000 or more. It is the only fixed plan for loans disbursed on or after July 1, 2026 (the alternative is RAP). It has no forgiveness and its payments do not count for PSLF.
Tiered Standard payment table (2026-27 rates)
| Balance | Term | Payment @ 6.52% | Payment @ 8.07% | Total interest @ 8.07% |
|---|---|---|---|---|
| $10,000 | 10 yr | $114 | $122 | $4,604 |
| $20,000 | 10 yr | $227 | $243 | $9,207 |
| $24,999 | 10 yr | $284 | $304 | $11,509 |
| $25,000 | 15 yr | $218 | $240 | $18,186 |
| $40,000 | 15 yr | $349 | $384 | $29,098 |
| $49,999 | 15 yr | $436 | $480 | $36,372 |
| $50,000 | 20 yr | $373 | $420 | $50,896 |
| $75,000 | 20 yr | $560 | $631 | $76,344 |
| $99,999 | 20 yr | $747 | $841 | $101,791 |
| $100,000 | 25 yr | $676 | $776 | $132,938 |
| $150,000 | 25 yr | $1,015 | $1,165 | $199,407 |
| $200,000 | 25 yr | $1,353 | $1,553 | $265,875 |
Notice the cliffs. At 8.07%, owing $24,999 means a 10-year payment of $304, while owing $25,000 drops it to $240 over 15 years. Crossing $100,000 does the same: $841 vs $776. A lower payment, but thousands more in interest.
Who is on the Tiered Standard plan?
- Borrowers with any Direct Loan first disbursed on or after July 1, 2026 — the Tiered Standard becomes the only standard plan available to them, even for their older loans.
- New borrowers who don’t pick a plan are placed on it by default.
- Borrowers whose loans all predate July 2026 keep the old 10-year standard (and graduated/extended) plans.
- Parent PLUS loans made after July 1, 2026 can’t use RAP, so the Tiered Standard is their plan.
Tiered Standard vs RAP
Compare a $40,000 balance at 6.52%: the 15-year tiered payment is $349. RAP at $45,000 AGI is $150; at $75,000 it is $438. RAP is cheaper per month until your income is roughly $70,000 — and RAP payments count for PSLF while tiered payments don’t.
The Tiered Standard plan suits borrowers with high, stable incomes who want a fixed payoff date and no annual income paperwork. You can always pay extra to finish early — there is no prepayment penalty on federal loans.
Check what fits your take-home payRun your salary through the paycheck calculator to see how much a student loan payment leaves for everything else.
Tips
- If you are close to a tier boundary, paying down principal before entering repayment can put you in a shorter tier and save interest.
- Working for a government or nonprofit employer? Switch to RAP — tiered payments never count for PSLF.
- Consolidating old loans after July 1, 2026 moves them onto the new rules; check what you lose first.
Frequently asked questions
How long is the Tiered Standard repayment plan?
10 years for balances under $25,000, 15 years for $25,000–$49,999, 20 years for $50,000–$99,999 and 25 years for $100,000 or more.
Who has to use the Tiered Standard plan?
Borrowers with federal loans disbursed on or after July 1, 2026 can choose only between the Tiered Standard plan and RAP; it is also the default if they don’t choose.
Does the Tiered Standard plan qualify for PSLF?
No. Payments on the Tiered Standard plan do not count toward Public Service Loan Forgiveness. RAP payments do.
What is the Tiered Standard payment on $50,000?
$420 a month over 20 years at the 8.07% graduate rate, or $373 at 6.52%.
Related student loan guides
- RAP explainedPayment chart, $50 match, 30-year forgiveness
- IBR vs RAPWhich income-driven plan is cheaper
- Extended vs graduatedOptions for pre-2026 loans
- New student loan limits 2026Grad PLUS ends, $100k / $200k caps
- PSLF basics 2026120 payments, tax-free forgiveness
- 2026-27 interest rates6.52% / 8.07% / 9.07%
- Monthly payment on $25,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $50,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $100,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- Commonwealth of Massachusetts, “The New Tiered Standard Plan” (mass.gov) — balance tiers 10/15/20/25 years.
- NerdWallet, “What Is the New Repayment Assistance Plan (RAP)?” (updated July 30, 2026) — RAP AGI brackets.
- U.S. Department of Education, “Fact Sheet: Trump Administration Simplifying Student Loan Repayment” (ed.gov, page reviewed June 11, 2026).
- U.S. Department of Education, FSA Electronic Announcement GENERAL-26-33, “Interest Rates for Federal Direct Loans First Disbursed Between July 1, 2026 and June 30, 2027” (June 4, 2026).
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.