Trump's DOE announces Repayment Assistance Plan (RAP) as SAVE Plan replacement

The Trump administration's Department of Education announces the Repayment Assistance Plan (RAP) as the official replacement for Biden's SAVE Plan. RAP modifies income-driven repayment formulas, reducing forgiveness timelines and increasing required monthly payments compared to SAVE. The new plan ends SAVE's $0 monthly payment threshold and accelerated forgiveness for low-balance borrowers. RAP maintains 10 percent discretionary income cap but eliminates provisions protecting interest from accruing during forbearance periods. Education Department officials state RAP is designed to ensure federal student loans are 'paid back fully by borrowers' rather than forgiven. Transition to RAP begins immediately.