How can I lower my student loan payments?

How you lower your student loan payment depends on whether your loans are federal or private — and, for federal borrowers, on a repayment-plan transition that's actively underway. A court-approved settlement ended the SAVE plan in March 2026, and federal loan servicers have been sending borrowers 90-day deadlines to pick a new plan since July 1, 2026. Missing that deadline means automatic enrollment in the Standard or Tiered Standard plan — both of which typically carry a higher monthly payment than an income-driven option. If you're still on SAVE or unsure what plan you're on, check studentaid.gov before your servicer's deadline passes.

Federal loans: enroll in RAP or an income-driven plan

The Repayment Assistance Plan (RAP), available since July 1, 2026, is the new default income-driven option for Direct Loan borrowers. RAP sets your monthly payment at up to 10% of your adjusted gross income, divided by 12, then reduces that amount by $50 for every dependent you claim — with a $10/month floor regardless of income. Borrowers with loans disbursed before July 1, 2026 can also still choose Income-Based Repayment (IBR); Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) remain open to existing borrowers but are scheduled to close to new enrollment by July 1, 2028. Apply for any of these directly at [studentaid.gov](https://studentaid.gov/manage-loans/repayment/plans).

The SAVE plan is gone — don't let the deadline auto-enroll you into a higher payment

If you were on SAVE, your servicer's notice starts a 90-day clock. Doing nothing doesn't preserve a lower payment — it defaults you into the Standard Repayment Plan or the new Tiered Standard Plan, both fixed-schedule plans with no income adjustment. If your income is modest relative to your balance, actively switching to RAP or IBR before the deadline is usually what actually lowers the payment; waiting it out does the opposite. Confirm your specific deadline and current plan status through your loan servicer's account portal or [studentaid.gov](https://studentaid.gov/manage-loans/repayment/plans).

Private loans: refinance to a longer term or a lower rate

Private student loans have no income-driven option — the federal programs above don't apply. If your credit and income have improved since you originally borrowed, refinancing into a new private loan with a longer term or a lower rate reduces the monthly payment, though a longer term also means more total interest paid over the life of the loan. Compare the full repayment cost, not just the new monthly figure, before refinancing.

Deferment and forbearance: short-term only, interest keeps accruing

Deferment and forbearance both pause or reduce your required payment temporarily, but they're a last resort, not a lowering strategy — interest continues to accrue during forbearance on every federal loan type, and can capitalize onto your balance when the period ends. See [what is loan deferment vs. forbearance](/answers/what-is-loan-deferment-vs-forbearance) for how the two options differ and when each makes sense.