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Explained: How Trump’s RAP rips up student debt rules; bigger bills, gutted aid, a brutal new reality for borrowers

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The Repayment Assistance Plan (RAP), enacted in July 2025, overhauls federal student loans starting July 2026. Replacing income-driven repayment with gross income calculations and mandatory minimum payments, RAP tightens borrowing limits and Pell Grant eligibility. Critics argue it shifts the burden to low-income borrowers, increasing debt and restricting educational opportunities.
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