The second Trump administration has ushered in many changes for student loan borrowers. These changes include, as part of the budget reconciliation bill, a brand-new repayment plan: The Repayment Assistance Plan (RAP), which will replace existing income-driven repayment plans.

KEY TAKEAWAYS Borrowers who enroll in the new Repayment Assistance Plan next year will see their student loan balances lower every month, no matter their payment size.Borrowers with lower incomes could have payments as low as $10 on RAP,

The Department of Education plans on denying 460,000 student loan borrowers from accessing the SAVE repayment plan.

The new Repayment Assistance Plan will replace all current income-driven repayment plans and adjust your payments to 1% to 10% of your adjusted gross income, with a minimum monthly payment of $10.

The Department of Education is immediately expanding the Income-Based Repayment plan to conform with changes from the 'Big, Beautiful Bill.'

The Department of Education said in a statement that the "Department has temporarily paused discharges for IBR borrowers in order to comply with ongoing court injunctions" over the Biden administration’s student loan forgiveness plan.

The Repayment Assistance Plan, created by Trump's budget reconciliation bill, will replace several income-driven repayment plans starting in 2026.

A massive and worrying change has hit the U.S. federal student loan area. The U.S. government has rolled out the Repayment Assistance Plan (RAP) a new way to pay back based on how