Archive · 29 Jul 2025
Student Loan Repayment Changes Under Trump Budget Bill
President Trump's new law changes how people pay back student loans.
Soon, new borrowers will have only two ways to pay: a standard plan or a plan where payments depend on income.
The income-driven plan, called RAP, could take up to 30 years to pay off.
If you already have student loans, you might need to switch plans.
Make sure you understand your options to avoid paying more in the long run.
Trump's budget bill significantly alters federal student loan repayment.
New borrowers after July 1, 2026, will have only two repayment options.
The Repayment Assistance Plan (RAP) offers income-driven repayment over up to 30 years.
Existing borrowers may need to switch plans to maintain income-driven repayment.
Borrowers should consider their options before the changes take full effect.
- Who
- Federal student loan borrowers.
- What
- Changes to federal student loan repayment plans.
- When
- The bill was signed into law on July 4th, with changes starting July 1, 2026.
- Where
- N/A
- Why
- To alter and streamline the process of repaying student loans.
- Bill Name
- Trump's budget bill
- Signed Into Law
- July 4
- New Repayment Options (After 2026)
- Standard, RAP
- RAP Payment %
- 1% to 10% of monthly income
- RAP Repayment Term
- Up to 30 years
- Existing IDR plans affected
- SAVE, PAYE, and ICR