AGI — Adjusted Gross Income
An income figure from a federal tax return. RAP uses AGI in its payment formula. It is not the same as take-home pay.
Home / Glossary
PLAIN-LANGUAGE REFERENCE
The student-loan terms worth knowing.
A short reference for common terms in repayment notices and federal student-loan guidance. The definition used for an official decision may be more specific than this summary.
Discretionary income
A defined income amount used by certain repayment plans. The official formula may use poverty-guideline figures and other rules.
IDR — Income-Driven Repayment
A category of federal repayment plans that base payment calculations on income-related factors under plan-specific rules.
RAP — Repayment Assistance Plan
A repayment plan available from July 1, 2026, with a percentage-of-AGI payment formula, dependent reduction, and a 30-year repayment period.
RAP guide ↗IBR — Income-Based Repayment
An IDR plan that generally uses 10% or 15% of discretionary income depending on borrower history and has a payment cap tied to the 10-year Standard Plan.
IBR guide ↗PAYE — Pay As You Earn
An older IDR plan with a general 10% discretionary-income formula and a 20-year repayment period, subject to eligibility. Scheduled to end no later than July 1, 2028.
PAYE guide ↗ICR — Income-Contingent Repayment
An older IDR plan with a formula based on discretionary income or a 12-year fixed payment adjusted for income. Scheduled to end no later than July 1, 2028.
ICR guide ↗SAVE — Saving on a Valuable Education
A repayment plan that Federal Student Aid says ended following a court order in March 2026. Impacted borrowers need to follow their servicer's transition notice.
SAVE transition ↗PSLF — Public Service Loan Forgiveness
A federal program that may forgive remaining eligible Direct Loan balances after qualifying employment and qualifying payment requirements are met.
Official PSLF information ↗Loan consolidation
Combining eligible federal loans into a Direct Consolidation Loan. It can change which plans are available and may affect benefits, terms, and payment-history treatment.
Forbearance
A temporary pause or reduction in payments under certain conditions. Interest may accrue, and the period may not count toward IDR discharge or PSLF unless a specific rule applies.
Recertification
The process of updating income/family information when required by a plan. Check the date and instructions displayed in the official account or notice.
Parent PLUS
A federal loan borrowed by a parent for a student's education. Parent PLUS and consolidation loans that include Parent PLUS have important eligibility restrictions.
Tiered Standard
A fixed-payment plan introduced in the 2026 repayment structure, with repayment period tiers related to the loan balance. Check official guidance for the applicable tier.
Servicer
The company that handles billing, payments, and account support for a federal student loan on behalf of the loan holder.
Definitions are simplified for learning purposes. Confirm official use and legal significance at StudentAid.gov or with your servicer.