The $10 Minimum: Is the New Repayment Assistance Plan Right for Your Budget?
Navigating the landscape of federal student loans has felt like a whirlwind lately. With major shifts in policy and the phasing out of older programs, many borrowers are looking at a new horizon: the Repayment Assistance Plan (RAP) . If you have been following the news, you have likely heard about the "$10 minimum" and wondered if this new system is a safety net or a potential hurdle for your financial goals. For many, student loan payments are the single largest "if only" in their monthly budget. "If only I didn't have this payment, I could save for a house, start a business, or finally build an emergency fund." The RAP plan aims to simplify the system, but it introduces significant changes to how your monthly bill is calculated. Let’s dive into what this means for your wallet and your long-term financial health. What is the Repayment Assistance Plan (RAP)? Starting July 1, 2026 , the Repayment Assistance Plan (RAP) will become a primary option for fe...