New Income-Driven Student Loan Repayment Plan Launches in July
A new federal student loan repayment plan called the Repayment Assistance Plan (RAP) is set to launch on July 1. It offers lower monthly payments for borrowers but extends forgiveness timelines from 20 years under existing plans like IBR to 30 years. The RAP waives unpaid interest and provides a $50 monthly principal contribution, potentially helping some borrowers reduce debt faster.
Topics: federal student loans government policy income-driven repayment loan forgiveness