Trump's Student Loan Repayment Changes: What To Know
Summary
The Department of Education is starting discussions to change how student loan repayments work under President Trump's new plan. This involves replacing current repayment options with a new system called the Repayment Assistance Plan (RAP) that factors in the borrower's income.Key Facts
- The Department of Education is holding sessions to discuss changes to student loan repayment plans.
- These changes are part of President Trump's "One Big Beautiful Bill."
- Current income-driven repayment plans will be replaced by a new plan called the Repayment Assistance Plan (RAP).
- RAP will set monthly payments from 1 to 10 percent of a borrower's annual income.
- Borrowers must enroll in RAP by July 1, 2026, or they will only have the standard repayment plan option.
- The standard repayment plan bases payments on loan amount and interest rates.
- Proposed changes will become part of federal regulations through a process called negotiated rulemaking.
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