Repayment Assistance Plan (RAP)
Coverage of Repayment Assistance Plan (RAP) in the Nexus archive.
- Student loan changes take effect with new payment plans, borrowing caps
President Trump's tax and spending bill has introduced new federal student loan changes, including the elimination of the Biden-era SAVE payment plan and the implementation of income-based and tiered repayment options. Future students face stricter borrowing caps, with limits set for master's, professional, and Parent Plus loans. The Department of Education claims these changes will reduce excessive borrowing and pressure institutions to reassess costs.
- SAVE student loan plan ending: What borrowers need to know
The SAVE student loan repayment plan will end on July 1, giving 7.5 million borrowers 90 days to choose a new plan. Borrowers who do not select an alternative will default to the standard repayment plan, with payments due by October 2026. Options include the standard plan, income-based repayment (IBR), or the new Repayment Assistance Plan (RAP) starting in July.