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Trump Administration Ends SAVE Plan, New RAP Launches in 2026

3/31/2026

Summary

Story summary

The Trump administration is ending the Saving on a Valuable Education (SAVE) student loan repayment plan, impacting 7.5 million borrowers.
The U.S. Department of Education will notify borrowers to choose a new repayment plan by July 1, 2026, or they will be placed in a standard plan with potentially higher payments.
The new Repayment Assistance Plan (RAP) will require 1% to 10% of discretionary income and launch on the same date.
Experts indicate that borrowers may find the Income-Based Repayment (IBR) plan more beneficial, as it offers loan forgiveness after 20 years, unlike RAP's 30-year timeline.

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Story summary

The Trump administration is ending the Saving on a Valuable Education (SAVE) student loan repayment plan, impacting 7.5 million borrowers.
The U.S. Department of Education will notify borrowers to choose a new repayment plan by July 1, 2026, or they will be placed in a standard plan with potentially higher payments.
The new Repayment Assistance Plan (RAP) will require 1% to 10% of discretionary income and launch on the same date.
Experts indicate that borrowers may find the Income-Based Repayment (IBR) plan more beneficial, as it offers loan forgiveness after 20 years, unlike RAP's 30-year timeline.