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Trump Administration to Revamp Student Loan Repayment Plans

9/30/2025

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Story summary
  • The Trump Administration plans an overhaul of student-loan repayment by July 2026.
  • New options include a Standard Plan based on balance and interest, and Repayment Assistance Plan (RAP) at 1-10% of discretionary income.
  • Graduate caps are $20,500 annually and $100,000 lifetime.
  • Existing borrowers may keep current options; Grad PLUS funding may be eliminated; deferment ends for disbursed loans after July 1, 2027.