SAVE plan vacatur and RAP implementation/payment-count integrity
Key Questions
What happens to new federal student loans after the July 1 deadline?
The OBBBA's July 1 deadline locks new loans into RAP or Tiered Standard repayment, eliminating access to IBR and PSLF for Parent PLUS and consolidation loans. New federal loans after this date will have RAP as the only IDR option available.
Does the RAP plan qualify borrowers for PSLF?
RAP qualifies for PSLF while Tiered Standard does not. SAVE forbearance months can also be bought back, and TLF/PSLF remains tax-free.
What risks do borrowers face from auto-enrollment into Standard Repayment?
Auto-enrollment by September affects 8M borrowers with risks of expensive Tiered plans, especially for K-12 teachers, and potential garnishment after 270 days. Reduced FSA staffing and servicer errors further increase the chance of incorrect payment estimates.
July 1 deadline has passed; auto-enrollment trap into Standard Repayment by September; 8M borrowers, auto-Tiered expensive enrollment risk for K-12 teachers; garnishment after 270 days; RAP $10 min/30yr; TLF/PSLF tax-free confirmed. OBBBA's July 1 deadline locks new loans into RAP or Tiered Standard, killing IBR/PSLF access for Parent PLUS and consolidation. New federal loans after July 1 will carry RAP as only IDR option. Advocacy event (tonight) amplifies urgency with real K-12 teacher stories. DOGE-era staffing cuts (40% of FSA staff) weaken oversight. Servicer errors giving wrong payment estimates compound the risk. Confirmed: RAP qualifies for PSLF, Tiered Standard does not; SAVE forbearance months can be bought back.