Student Loan Payment Could Triple Under New Trump Rules—Here’s When
Summary
Millions of people with federal student loans may see their monthly payments increase because of new rules from the Education Department. These changes include removing several repayment options and introducing a new plan called the Repayment Assistance Plan (RAP), which is expected to raise costs for many borrowers.Key Facts
- New rules will replace several existing income-driven repayment plans with the Repayment Assistance Plan (RAP).
- RAP is expected to increase payment amounts for many borrowers, especially those who previously used plans that are now blocked or ending.
- Current income-based repayment options will remain for existing borrowers, but new borrowing after July 1, 2026, will use RAP.
- Parent PLUS loan borrowers face deadlines to consolidate their loans to access certain repayment options.
- Payments for nontraditional households might increase under RAP due to a narrow definition of family size.
- A single borrower earning $50,000 could see monthly payments rise from $110 under the previous plan to $210 under RAP.
- PAYE and Income-Contingent Repayment (ICR) plans will end by July 1, 2028.
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