PAYE Is Not Gone Yet — But the Window Is Closing

A CSLP planning note on PAYE, REPAYE, and the July 2026 RISE transition

The final RISE regulations make major changes to federal student loan repayment. One of the most important planning issues involves PAYE, or Pay As You Earn. But PAYE is not the only legacy income-driven repayment issue in the final rule. The regulations also refer to REPAYE as a continuing transition plan through June 30, 2028, and REPAYE is treated differently than PAYE.

The distinction matters because borrowers, advisors, and servicers may be tempted to treat every legacy plan as though the same enrollment rules apply. They do not.

The key dates matter

The final RISE regulations are effective July 1, 2026. Until that date, the current repayment regulations remain in effect. That means borrowers who qualify for PAYE under current rules may still have a potential window to enroll before the new rules take effect.

But once the RISE regulations become effective, PAYE is treated very differently.

PAYE becomes a narrow legacy plan

Under the final regulatory text, through June 30, 2028, a borrower may repay under PAYE only if the borrower:

• has loans eligible for repayment under PAYE;
• is a PAYE “new borrower”;
• elects to have the aggregate monthly payment recalculated under the required PAYE rules when initially entering the plan;
• was repaying a loan under PAYE on July 1, 2024; and
• has not received a Direct Loan on or after July 1, 2026.

That July 1, 2024 language is causing some confusion. It does not mean PAYE enrollment under current regulations ended on July 1, 2024. The RISE regulations do not take effect until July 1, 2026. However, once those regulations are effective, the rule uses July 1, 2024 as part of the test for who may remain in PAYE during the transition period.

PAYE becomes a one-way door

The final rule also creates a major trap for borrowers already in PAYE.

A borrower who was repaying under PAYE on or after July 1, 2024 and then changes to a different repayment plan may not re-enroll in PAYE.

That means PAYE should now be viewed as a fragile legacy benefit. For borrowers who are already in PAYE, leaving the plan could permanently close the door.

This is especially important for borrowers comparing PAYE to IBR, RAP, REPAYE, or other repayment options. A payment that looks better in the short term may come with the permanent loss of PAYE eligibility.

REPAYE is treated differently than PAYE

The RISE regulations also refer to REPAYE. This is important because SAVE was created by modifying REPAYE, and the SAVE litigation created significant operational confusion. But the final RISE regulatory text still uses REPAYE as a transition plan.

The relevant rule says that through June 30, 2028, a Direct Loan borrower who has not received a Direct Loan on or after July 1, 2026 may repay under REPAYE if the borrower has loans eligible for repayment under that plan.

That is different from the PAYE language. The REPAYE provision does not say the borrower had to be repaying under REPAYE on July 1, 2024. It also does not include the PAYE-style rule saying that a borrower who leaves REPAYE cannot re-enroll.

The practical reading is that, after July 1, 2026, REPAYE appears to remain available as a legacy plan through June 30, 2028 for otherwise eligible borrowers who have not received a new Direct Loan on or after July 1, 2026. This is a separate question from whether ED and servicer systems will make that process clean in practice, especially given the SAVE litigation and the operational history around REPAYE/SAVE.

There is also a REPAYE-to-IBR trap

The final regulations include another important REPAYE planning rule: a borrower who has made 60 or more qualifying repayments under REPAYE on or after July 1, 2024 may not enroll in IBR.

That is a major planning issue because IBR may be the fallback plan some borrowers expect to use after the transition. Borrowers with significant REPAYE payment history need to understand whether moving between REPAYE, RAP, and IBR could create problems for their longer-term forgiveness strategy.

Both PAYE and REPAYE still sunset in 2028

Even for borrowers who qualify to remain in PAYE or repay under REPAYE after July 1, 2026, these plans do not last forever.

PAYE and REPAYE are available only through June 30, 2028. After that transition period, borrowers will need to move to another available repayment plan, such as RAP, IBR, standard, graduated, or extended repayment, depending on their loan type and eligibility.

So neither PAYE nor REPAYE should be viewed as a permanent shelter from the new repayment system. They are transition options, and the rules are not identical.

Planning takeaway

Borrowers should not assume that PAYE is already closed today. Until the RISE regulations take effect on July 1, 2026, borrowers who qualify under current PAYE rules may still be able to enroll.

But borrowers should also not assume that enrolling before July 1, 2026 guarantees long-term access to PAYE. Once the RISE rules become effective, PAYE is limited to a narrow group of borrowers, and it sunsets after June 30, 2028.

For borrowers already in PAYE, the most important practical point is this:

Do not leave PAYE without understanding that you may never be able to get back in.

For REPAYE, the analysis is different. The final RISE text appears to allow eligible Direct Loan borrowers to repay under REPAYE through June 30, 2028 if they have not received a new Direct Loan on or after July 1, 2026. However, borrowers should still review their facts carefully, especially if they are considering IBR or have substantial REPAYE payment history after July 1, 2024.

For borrowers not currently in PAYE but who may qualify under today’s rules, the period before July 1, 2026 may be an important planning window. PAYE eligibility, REPAYE eligibility, loan type, tax filing status, income, family size, PSLF goals, and future borrowing plans should all be reviewed before making a repayment plan decision.

Bottom line

PAYE is not immediately gone. But it is being phased out.

REPAYE also appears in the RISE transition rules and is treated differently from PAYE. PAYE has a July 1, 2024 legacy-status requirement and a no-reentry rule. REPAYE does not appear to have those same limitations, but it is still temporary and tied to the borrower not receiving a new Direct Loan on or after July 1, 2026.

In this environment, repayment plan decisions should be made carefully. The wrong move could close off options that may not be available again.

Internal source notes

• RISE final regulations: effective date July 1, 2026.
• 34 CFR 685.209(c)(2), as amended by the RISE final regulations: through June 30, 2028, a Direct Loan borrower who has not received a Direct Loan on or after July 1, 2026 may repay under REPAYE if the borrower has loans eligible for that plan.
• 34 CFR 685.209(c)(3)(ii), as amended: a borrower who has made 60 or more qualifying repayments under REPAYE on or after July 1, 2024 may not enroll in IBR.
• 34 CFR 685.209(c)(4), as amended: PAYE eligibility through June 30, 2028 is limited to borrowers meeting the listed legacy conditions, including repaying under PAYE on July 1, 2024 and receiving no Direct Loan on or after July 1, 2026.
• 34 CFR 685.209(c)(4)(iv), as amended: a borrower repaying under PAYE on or after July 1, 2024 who changes to another repayment plan may not re-enroll in PAYE.
• 34 CFR 685.209(d)(1), as amended: through June 30, 2028, Direct Subsidized Loans, Direct Unsubsidized Loans, graduate/professional Direct PLUS Loans, and Direct Consolidation Loans that are not excepted consolidation loans are eligible to be repaid under REPAYE and PAYE.