Hi all, my wife has nearly $400k in loans (this has ballooned up from $250k since 2014). Under SAVE and her plan before that, she was to be forgiven in 2039 (12 years from now), and we were saving for the taxes on the forgiveness which I estimated would be, ironically, in the $250k range. But now, with Trump’s new plan, it seems we only have 2 options—really one. Am I right in understanding that it will push her 25 year plan to 30 years, so she’d be paying until 2044, but that the new plan will actually help her pay some of the principal down by 2044? What is the name of that new plan and how do I switch her? Through studentaid.gov? Or her servicer (which is Aidvantage, I believe). Thank you for all your thoughts and advice.
Newbie asking about Trump’s new Options
byu/UseAlloftheBuffalo inStudentLoans
Posted by UseAlloftheBuffalo
2 Comments
RAP is not available until July 2026.
ICR, IBR, and PAYE are currently available. By July 2028 the only IDR options would be IBR or RAP.
I wrote a summary post of all the repayment plan changes that the OBBBA will bring, including RAP. You can find that here: [https://www.reddit.com/r/StudentLoans/s/lsHO2ct2JR](https://www.reddit.com/r/StudentLoans/s/lsHO2ct2JR)
RAP will pay $50/mo towards principal if her payment does not cover interest. Monthly accrued interest is also subsidized. You will need to calculate if the extra 5 years of payments will be worth the potential tax bomb savings. Often the added payment are more than what you would save on the back end.