Repayment options

The type of loans you have will dictate which repayment options are available to you.

Federal loan changes for the 2026–27 academic year
Changes to the federal loan programs under the One Big Beautiful Bill Act (OBBBA) took effect July 1, 2026, and include changes to: repayment options and limited exceptions for continuing borrowers. Some existing income-driven repayment (IDR) plans are scheduled to end by 2028, and continuing borrowers will need to select a new plan.

Please review our Federal Loan Changes Under OBBBA page to see what applies to you.

Repayment options may include fixed payment repayment plans,⁠01 For Federal Loans, new borrowers (with loans first disbursed after July 1, 2026) may only enroll in the Tiered Standard Plan. Continuing borrowers (with loans disbursed before July 1, 2026 and under the <a href="https://sfs.mit.edu/federal-loan-changes/" target="_blank" rel="noopener">limited exception</a>) may continue to enroll in the legacy Standard, Graduated, and Extended Plans.   income-driven repayment (IDR) plans,⁠02 For Federal Loans, new borrowers (with loans first disbursed after July 1, 2026) may only enroll in the Repayment Assistance Program (RAP). Continuing borrowers (with loans disbursed before July 1, 2026 and under the <a href="https://sfs.mit.edu/federal-loan-changes/" target="_blank" rel="noopener">limited exception</a>) may opt into RAP or continue to enroll in the Income-Based Repayment (IBR) or the legacy Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans.   as well as loan consolidation. Your selection will depend on your expected income once you leave MIT.

Keep in mind that the shorter your repayment period is, the lower your total interest payment will be over the life of your loan. Contact your loan servicer for more information on specific repayment options. For Federal Direct Loans, Federal Student Aid’s Repayment Plans page is an additional resource.

Deferment, forbearance, and cancellation

If you’re having trouble making your loan repayments, you may be eligible for a deferment, forbearance, or cancellation.

  • A deferment lets you temporarily stop making payments on your loan.
  • A forbearance lets you make smaller payments or stop making payments on your loan for a specified period, or extends the time for making payments.
  • A cancellation releases you from all or part of your obligation to repay your loan.

You must apply for and receive permission from your loan servicer(s) to obtain a deferment, forbearance, or cancellation, and must continue making loan repayments until each loan servicer notifies you that your request has been approved.

Public Service Loan Forgiveness (PSLF) Program

This program is intended to encourage individuals to enter and continue to work full-time in a public service job. Under the program, borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after making 120 qualifying payments on those loans while employed full-time by certain public service employers. Please see Federal Student Aid’s Public Service Loan Forgiveness page for a full description of the program and qualifying repayment plans.

Rehabilitation

If you have defaulted on a federal or MIT loan, you may be able to rehabilitate your loan. Contact your loan servicer or getaloan@mit.edu to discuss rehabilitation.

Consolidating loans

Refinancing loans through consolidation creates a new loan with new terms and conditions for the combined balance of your original loans.

Consolidation usually refers to federal consolidation, although some private lenders offer consolidation loans as well. Federal consolidation combines multiple eligible federal student loans with various repayment schedules into a new federal loan with a single monthly payment. However, if you take longer to repay your new consolidated loan, you’ll pay more interest over the life of the loan. Check Federal Student Aid’s Loans Consolidation page for the options available to you.

  1. For Federal Loans, new borrowers (with loans first disbursed after July 1, 2026) may only enroll in the Tiered Standard Plan. Continuing borrowers (with loans disbursed before July 1, 2026 and under the limited exception) may continue to enroll in the legacy Standard, Graduated, and Extended Plans.⁠ ↑
  2. For Federal Loans, new borrowers (with loans first disbursed after July 1, 2026) may only enroll in the Repayment Assistance Program (RAP). Continuing borrowers (with loans disbursed before July 1, 2026 and under the limited exception) may opt into RAP or continue to enroll in the Income-Based Repayment (IBR) or the legacy Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans.⁠ ↑