From Graduation to Monthly Bill: How to Estimate Your Student Loan Payment for 2026 and Beyond

When you walk across the stage and receive your diploma, chances are good you’re carrying more than just memories. You're also stepping into a future with student loan payments — and for the class of 2026 and beyond, those payments are about to look different.

Key Takeaways

• Starting July 1, 2026, new federal student loans will offer only two repayment options: the revised Standard Repayment Plan or the new Repayment Assistance Plan (RAP).
• RAP calculates monthly payments as a percentage of Adjusted Gross Income (AGI), not discretionary income, and sets a $10 minimum payment.
• To estimate your monthly payment: Project your future income, apply the RAP formula (or Standard plan terms), subtract $50 per dependent child under RAP, and divide by 12. 
• Borrowers currently on legacy income-driven plans (like SAVE, PAYE, or ICR) must choose by July 1, 2028 — otherwise they’ll be moved into RAP automatically. 
• The new rules under the One Big Beautiful Bill (OBBB) – including RAP – mean you should plug in your numbers now and build a repayment-ready budget.

Understanding the Borrower’s Challenge

If you’re entering repayment in 2026, you’re facing a dual reality: you want to project your monthly payment before you borrow, and you need to understand how the upcoming changes will affect your future. At PeopleJoy, we believe that smart borrowing begins well before graduation.

On one hand, you want to say “yes” to that advanced degree, internship opportunity, or dream job—but you also want to avoid a payment shock a year or two after you graduate. Traditionally, borrowers relied on older income-driven repayment (IDR) plans that tied payments to discretionary income (income minus poverty-level and family-size adjustments). But under the OBBB framework and RAP, the rules are shifting. Now your monthly payment may be based on AGI rather than discretionary income, and your long-term repayment horizon may stretch to 30 years. NerdWallet+1

You’re working for a degree now, but you’ll be paying for it for years. Estimating that payment as accurately as possible helps you manage decisions: Should you borrow less? Take a part-time job early? Negotiate employer tuition assistance? At PeopleJoy, our clients benefit when they treat student loans like any other financial commitment—one you can estimate, plan for, and optimize.

Step 1: Know Your Loan Amount and Repayment Options

Start with the basics: estimate your total loan balance at graduation. Add up every disbursement across all years, plus any interest that may accrue during deferment. This gives you a realistic snapshot of what you’ll owe when repayment begins.

Beginning in 2026, new borrowers will have two repayment options:

• Standard Plan – fixed payments over 10–25 years depending on balance.
• RAP – income-based payments calculated as a percentage of AGI, with forgiveness after 30 years.

Your loan balance affects your total repayment cost, but your monthly payment under RAP depends mostly on your income and family size. This makes income projection your next crucial step.

Step 2: Estimate Your Starting Income and Growth

RAP payments are determined by your adjusted gross income, so estimating post-graduation earnings is key.
Ask yourself:

• What is the average starting salary for my field?
• What annual income growth can I expect?
• Will I have additional income sources like bonuses or part-time work?

For instance, if you expect to earn $50,000 in your first year and anticipate 3% annual growth, your RAP payment will likely fall near 5% of AGI. If you have dependents, subtract $50 per child from your monthly payment calculation.

Even modest salary differences can shift your repayment amount significantly — which is why projecting your income early helps you make smarter borrowing decisions today.

Step 3: Apply the RAP Formula

Use this simplified version to estimate payments:
Monthly payment ≈ (AGI × percentage) ÷ 12 – ($50 × number of dependents)

Example:
If your AGI is $50,000 and you pay 5%, your annual payment equals $2,500. Divide that by 12 to get $208 per month. If you have one dependent, subtract $50 to reach an estimated payment of $158. The minimum payment under RAP is $10.

For comparison, a Standard Plan uses a fixed payment schedule based on your loan balance, interest rate, and term — similar to a mortgage. You can use federal calculators or online tools to see both side by side.

Seeing the difference between a balance-based plan and an income-based one provides a clear view of what you can comfortably afford after graduation.

Step 4: Project Future Payments and Stress-Test Your Budget

RAP introduces new stability but also new variables. Payments will change with income, and forgiveness doesn’t occur until after 30 years. Even low-income borrowers will pay something under the $10 minimum.

To prepare:

• Build a budget buffer above your estimated payment. If RAP suggests $150 per month, aim to budget for $200.
• Consider how future income changes or family growth (dependents) could alter payments.
• Use online repayment simulators or consult an advisor to visualize 5-, 10-, and 20-year projections.

By stress-testing your finances now, you can avoid repayment anxiety later. Borrowers who plan early typically borrow less and manage repayment with greater confidence.

Step 5: Use the Transition Timeline to Your Advantage

If you already hold federal loans under SAVE, PAYE, or ICR, you’ll have until July 1, 2028 to switch before being automatically transitioned into RAP.

If your loans will be first disbursed on or after July 1, 2026, RAP and the Standard Plan will be your only choices. That gives current students nearly a year to assess how much to borrow and how these plans will shape future payments.

Use this window to:

• Consolidate wisely, if needed.
• Evaluate whether RAP or Standard best fits your career path.
• Adjust borrowing amounts now to minimize future repayment stress.

This preparation period is an opportunity — not a countdown clock.

Friend-Expert Guidance: What This Means for You

Think of PeopleJoy as your “friend-expert” in student loan strategy — approachable yet deeply informed. The goal isn’t just to manage debt, but to help you make decisions today that align with tomorrow’s career, family, and financial goals.

Our advisors help borrowers simulate repayment under both RAP and Standard plans, model income growth, and identify the most efficient path toward loan forgiveness or payoff. We believe:

• Borrowing is a strategic decision, not a default.
• Repayment is a financial plan, not a surprise.
• Clarity beats anxiety — every time.

When you understand how RAP works and estimate your payments accurately, you gain the power to borrow confidently and repay intentionally.

If your employer partners with PeopleJoy, you don’t have to figure this out alone. Schedule your Student Loan Coaching Call today to review your repayment options and estimate what your monthly payments could look like under the new Repayment Assistance Plan (RAP).

A PeopleJoy advisor will walk you through your projected income, expected balance, and family situation — helping you understand which repayment strategy fits your goals best.

Take charge of your financial future before repayment begins.

Interested in learning more about RAP and the 2026 student loan changes?
Check out the following blog posts:

• “ Will Your Monthly Payment Go Up Under the New RAP Plan?“ https://www.peoplejoy.com/article/will-your-monthly-payment-go-up-under-the-new-rap-plan-asnvs
• “What Borrowers Need To Know Before the July 2026 Student Loan Deadline” https://www.peoplejoy.com/article/what-borrowers-need-to-know-before-the-july-2026-student-loan-deadline
• “Student Loans: What to Do Right Now” https://www.peoplejoy.com/article/student-loans-what-to-do-right-now