tiered standard plan
Coverage of tiered standard plan in the Nexus archive.
- Student loan Repayment Assistance Plan launches, find out how to qualify
The U.S. Department of Education launched the Repayment Assistance Plan (RAP), allowing federal student loan borrowers to make income-based payments of 1-10% of their income, reduced by $50 per dependent. Borrowers making 360 on-time payments can apply for an interest waiver and matching principal payment. A separate Tiered Standard plan offers fixed repayment terms of 10-25 years based on loan amounts, replacing the previous 10-year default plan. Both programs began on July 1.
- 7 million student-loan borrowers will soon need to take action — or be put on the most expensive repayment plan
Student-loan borrowers on the SAVE plan will receive notices to transfer to a new repayment plan by July, with automatic placement into more expensive options if no action is taken. The Department of Education warns payments will likely increase under the new plans, while over 60 lawmakers urge borrowers to be placed in cheaper alternatives.