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Education Department Touts New Student Loan Repayment Plan, But Read The Fine Print

The SAVE plan is ending and will be replaced by the Repayment Assistance Plan (RAP) and the Tiered Standard repayment plan. These changes are part of the Working Families Tax Cuts Act. Borrowers in the SAVE plan must find a new option within 90 days starting Wednesday.

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What changed

The administration has identified the specific names of the two new replacement plans.

Live updates

  1. Trump Administration Replaces SAVE Plan With Two New Repayment Options

    The SAVE plan is ending and will be replaced by the Repayment Assistance Plan (RAP) and the Tiered Standard repayment plan. These changes are part of the Working Families Tax Cuts Act. Borrowers in the SAVE plan must find a new option within 90 days starting Wednesday.

    What's confirmed:

    • The Trump administration is replacing the SAVE plan with the Repayment Assistance Plan and the Tiered Standard repayment plan.
    • The new repayment structure is established by the Working Families Tax Cuts Act.
    • SAVE plan participants have 90 days to select a new plan beginning Wednesday.

    Still unconfirmed:

    • Borrowers enrolled in the SAVE program will face stark increases in monthly payments.
    • Two new plans are coming to overhaul federal loan repayment.
    confidence 90%

  2. Application Issues Plague New Student Loan Repayment Plans

    Borrowers report growing problems with application processing as new repayment options approach. The Trump administration is launching these programs to replace existing plans. Questions persist regarding the actual benefits of the new system.

    Still unconfirmed:

    • Borrowers are reporting worsening problems with application processing for popular repayment plans.
    • The Trump administration is preparing to launch a new student loan repayment plan.
    • Questions remain about the true benefits of the upcoming program.
    confidence 70%

  3. Education Department Adds Interest Rate Cut to New Repayment Plans

    The Department of Education is replacing the SAVE plan with the Repayment Assistance Plan and Tiered Standard plans on July 1, 2026. The administration is also implementing a temporary interest rate reduction to assist borrowers. These changes provide millions of loan holders with new debt repayment options.

    What's confirmed:

    • The SAVE plan is ending.
    • Two new repayment options for federal student loan holders begin July 1.

    Still unconfirmed:

    • The U.S. Education Department plans a temporary 1% interest rate reduction for federal student loans.
    confidence 90%

  4. US Education Department Launches New RAP Student Loan Repayment Plan

    The Department of Education is replacing the SAVE repayment plan with the Repayment Assistance Plan (RAP) and Tiered Standard plans. These changes take effect July 1, 2026. Borrowers are warned that benefits may involve significant tradeoffs.

    What's confirmed:

    • New student loan repayment plans begin on July 1.
    • The SAVE repayment plan has been ended.
    • The Education Department is introducing the Repayment Assistance Plan, also known as RAP.
    • Technical glitches are hindering borrowers from accessing repayment plans and correct information.

    Still unconfirmed:

    • Parent PLUS borrowers risk their forgiveness and repayment options after July 1.
    confidence 85%