Federal Court Halts Biden's Student Loan Plan, New RAP Launches

0:00A federal court dropped a big ruling on March 10th, shutting down the save income driven student loan plan that President Biden wrote out last, August. That means over 7 million borrowers got to switch plans pronto. Starting July 1st, the Trump team is launching the new Repayment Assistance Plan, or RAP, which tweaks monthly payments based on your income and dependence, but with a fresh formula. Even like SAVE, which slashed bills for tons of folks by tying payments tight to family size and earnings, RAP shakes things up. Experts like Becca Craig from Focus Partners, warn most people on SAVE will face higher monthly hits under this switch. Barrowers are feeling the heat already. Craig says over 7.5 million enrolled folks have to pick a new path, or the feds will do it for them. Bushmen like Olivia Stucky at the University of Kansas are stressing too. She's $10,000 deep in debt, chasing healthcare dreams, and wishes she'd know more from

1:00jump. Loan servicers are reaching out now, giving everyone 90 days to transition smooth. No panic moves, Craig urges current and future students to weigh options carefully before signing up. With payments restarting 6 months post-grad for newbies, this is prime time to get ahead. Stay sharp out there, lock in the best fit, and keep that debt from derailing your flow. From your city, powered by AI, this is Kansas News Today. I'm Corey with The Story.