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Education Dept Unveils Income-Based RAP Plan, Consumer Groups Warn

6/18/2026

Summary

Story summary

U.S. Secretary of Education Linda McMahon announced the Revised Affordable Payment (RAP) plan will launch within two weeks, with changes effective July 1, 2026.
RAP bases payments on income, so a $75,000 earner with two dependents would pay $340 monthly, requiring 360 payments over 30 years for discharge.
The department promotes RAP’s interest waivers and matching principal payments, while consumer groups warn of payment shocks and higher total costs.

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Story summary

U.S. Secretary of Education Linda McMahon announced the Revised Affordable Payment (RAP) plan will launch within two weeks, with changes effective July 1, 2026.
RAP bases payments on income, so a $75,000 earner with two dependents would pay $340 monthly, requiring 360 payments over 30 years for discharge.
The department promotes RAP’s interest waivers and matching principal payments, while consumer groups warn of payment shocks and higher total costs.