From Quartz.

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Beginning July 1, 2026, the Trump administration’s Repayment Assistance Plan will replace most existing income-driven federal student loan repayment options, marking a major policy change with affordability implications. The Repayment Assistance Plan (RAP), created under the One Big Beautiful Bill Act, sets payments at 1%–10% of adjusted gross income in $10,000 brackets and runs up to 30 years. Unlike current income-driven repayment such as the SAVE plan, RAP does not shield income for basic living costs, which analysts say could raise payments for many federal student loans. Experts cite examples of monthly bills rising from $36 under SAVE to $440 at $81,000 income; an interest subsidy would prevent balances from growing. ICR, PAYE, and REPAYE phase out by 2028 while IBR remains; about 7 million SAVE borrowers shift to RAP, alongside rising delinquencies and a CBO savings projection of $270.5 billion in 2025–2034. #studentloans #rap #debtmanagement #financialaid #trumppolicy

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