Eighth Circuit kills SAVE; ED OBBBA Apr30 final rule/RISE caps
Key Questions
What is the RAP repayment plan launching July 1?
RAP offers repayment at 1-10% of income with a $10 minimum over 30 years. It replaces prior plans like SAVE for many borrowers.
What are the new federal student loan interest rates?
Rates will rise to 6.52% for undergrad, 8.07% for grad, and 9.07% for PLUS loans. This increases borrowing costs starting next year.
What happens if SAVE borrowers miss the 41-day switch deadline?
Borrowers have 41 days to switch from SAVE or face automatic enrollment in the Standard plan. The most expensive repayment option may result.
How does the Parent PLUS consolidation window work?
Parent PLUS borrowers have a 42-day window to consolidate before permanently losing income-driven plans. Rates will climb to 9.07% afterward.
When do student loan collections restart and what are the delinquency figures?
Collections restart May 5 with over $171 billion in delinquencies reported. Millions face default risks as payments resume.
Will student loan forgiveness be taxable in 2026?
Forgiveness becomes taxable again in 2026, potentially creating large IRS bills on forgiven amounts. Borrowers could owe thousands on income never received.
How many borrowers recently received PSLF forgiveness?
11,500 borrowers were approved for forgiveness last month under PSLF. New disqualification rules may block future relief.
What lawsuits are challenging student loan caps?
25 states are suing over repayment caps and related changes. The suits target provisions in the One Big Beautiful Bill Act.
Jul1 RAP launches 1-10% income/$10 min/30yr; new rates 6.52% undergrad/8.07% grad/9.07% PLUS; 41 days for 8M to switch SAVE or face Standard; Parent PLUS 42-day consolidation window; collections restart May5 with $171B+ delinquencies; forgiveness taxable 2026; 25 states sue over caps; PSLF 11.5k approved but new disqualification rules advance.