Trump Education Department to shift 7.5M off unlawful Biden student loan repayment plan

Key Points:

• The Department of Education announced a shift to streamline student debt repayment plans, requiring about 7.5 million borrowers on Biden’s SAVE Plan to exit within 90 days starting July 1.
• Borrowers must transition to one of two Trump administration repayment plans, with Biden’s plans set to be fully discontinued by July 1, 2028.
• The Repayment Assistance Plan (RAP) requires payments between 1% and 10% of earnings and cancels remaining debt after 30 years, while the Tiered Standard Plan extends repayment up to 25 years in some cases.
• The move aims to simplify the complex system of over 40 repayment options, which Education officials described as confusing and difficult to navigate.
• The changes follow a federal appeals court striking down Biden’s income-driven repayment plan, prompting the department to emphasize that repayment plans are congressionally mandated and will continue under judicial scrutiny.