Trump Admin to Launch New Student Loan Repayment Plans on July 1

The decision comes as America’s student loan portfolio is now almost $1.7 trillion, with a quarter of borrowers defaulting.

The graduation ceremony at Pasadena City College in Pasadena on June 14, 2019. Robyn Beck/AFP via Getty Images

The Trump administration is eliminating “fragmented and confusing” student loan repayment options, replacing them with two affordable plans beginning next month.

The One Big Beautiful Bill Act, signed into law by President Donald Trump last year, included the Repayment Assistance Plan (RAP) and the Tiered Standard repayment plan.