The Trump administration is eliminating “fragmented and confusing” student loan repayment options, replacing them with two affordable plans beginning next month.
The One Big Beautiful Bill Act, signed into law by President Donald Trump last year, included the Repayment Assistance Plan (RAP) and the Tiered Standard repayment plan.
“Starting on July 1, borrowers with new student loans will have immediate access to these new plans and select benefits, including a new matching principal payment and an interest waiver for qualified borrowers, which will lower their loan balances,” the Department of Education said in a June 9 statement.
The new plans offer borrowers two paths to repaying loans, the department said, citing a January 2025 survey from digital banking platform Laurel Road. …