U.S. Secretary of Education Linda McMahon smiles during the signing event for an executive order to shut down the Department of Education next to U.S. President Donald Trump, in the East Room at the White House in Washington, D.C., U.S., March 20, 2025.
- House Republicans have a plan to drastically change how millions of Americans repay their student debt, starting July 1, 2026.
- Here's what monthly bills for student loan borrowers could be if the proposal is enacted.
House Republicans have a plan to drastically change how millions of Americans .
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Under the GOP's new proposal, known as the , there would be just two repayment options for those with . Currently, borrowers have about 12 ways to repay their student debt, according to higher education expert Mark Kantrowitz.
If the GOP plan is enacted, borrowers would be able to pay back their debt through a plan with fixed payments over 10 to 25 years, or via an income-driven repayment plan, called the "."
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Under the RAP plan, monthly bills for borrowers would be set as a share of their income, said Jason Delisle, a nonresident senior fellow at the Urban Institute. The percentage of income borrowers' would have to pay rises with their earnings, starting at 1% and going as high as 10%.
House Republicans to overhaul the student loan and financial aid system at the end of April, in an effort to tout savings for President Donald Trump's planned tax cuts.
Here's what monthly bills for student loan borrowers could be if the proposal becomes law.
What's new about the GOP student loan payment plan
Money Report
While the U.S. Department of Education's current income-driven repayment plans typically conclude in loan forgiveness after 20 or 25 years, the new GOP plan wouldn't lead to debt cancellation for 30 years. New borrowers also wouldn't have a share of their income protected anymore, as they do now.
But the plan waives interest on certain payments, and parents receive .
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The GOP changes to student loan repayment plans would only apply to loans made after July 1, 2026. Those with existing loans should still have access to most of the current repayment plans.
