For federal loans disbursed on or after July 1, 2026, two repayment options are available: a tiered Standard Repayment Plan with fixed payments over 10–25 years, and the new Repayment Assistance Plan (RAP), an income-driven option with payments of 1–10% of discretionary income and loan forgiveness after 30 years. Choosing the right plan after graduation depends on your projected income trajectory, total loan balance, and whether you qualify for Public Service Loan Forgiveness. Palmer’s Financial Aid team can help you think through this before you graduate.

Your two repayment options at a glance

The Repayment Assistance Plan (RAP): what we know

RAP is the new income-driven repayment option for all federal loans disbursed after July 1, 2026. Here is what is confirmed as of April 2026:

1. Monthly payments range from 1–10% of discretionary income, scaled by earnings
2. Loan forgiveness is available after 30 years of qualifying payments
3. You can switch between RAP and Standard at any time — it is not a permanent election
4. Final rules from the Department of Education on specific income thresholds and payment calculations are pending and will be published before July 1, 2026

What RAP means for early-career chiropractors

A D.C. graduate building a practice in the first few years, where income is growing but not yet at full capacity, could have significantly lower monthly payments under RAP than under Standard. The tradeoff is a longer repayment window and potentially more total interest paid. The right choice depends on your income trajectory, which varies considerably by practice type, ownership structure, and geographic market.

The Standard Repayment Plan: predictability and faster payoff

The Standard plan offers fixed monthly payments calculated on your loan balance at the time of repayment entry. Repayment terms range from 10 to 25 years depending on total balance. Standard is the right choice if your income is strong enough in the early practice years to support fixed payments and if paying off debt faster and minimizing total interest paid is the priority.

You can also start on RAP and switch to Standard once your practice income reaches a level where the fixed payment is manageable. There is no penalty for switching.

Repayment planning for chiropractic graduates

Palmer graduates rank in the top 1% nationally for student loan repayment — one of only 51 institutions out of more than 5,700 nationwide, according to the U.S. Department of Education. That outcome reflects graduation rates, board pass rates, and career placement across the profession. It does not mean every graduate’s repayment path is identical; it means Palmer graduates, as a group, are successful at repaying at an exceptionally high rate.

Chiropractic income varies significantly by practice type, ownership structure, specialty, and location. Palmer does not publish earnings projections because the range is too wide to be meaningful without context. The Bureau of Labor Statistics Occupational Outlook Handbook for Chiropractors is the most reliable publicly available source for profession-wide earnings data.

The questions worth working through with your Financial Aid counselor before graduation:

1. What is your estimated total federal loan balance at program completion?
2. What is your realistic income expectation in years 1–3 of practice?
3. Does RAP or Standard better fit your specific balance-to-income ratio?
4. Do you qualify for Public Service Loan Forgiveness if working in a qualifying setting?

What about existing income-driven plans?

For students who already have federal loans from before July 1, 2026: SAVE, PAYE, and ICR remain available until July 1, 2028, at which point borrowers on those plans will transition to RAP or IBR. IBR remains available for qualifying borrowers. If you have a mix of pre- and post-July 2026 loans, your repayment options may differ by loan. A Financial Aid counselor can help you navigate that.