Federal Income-Driven Repayment Plans Restructured, New RAP Plan to Launch in July 2026

The 'One Big Beautiful Bill Act' has significantly restructured federal income-driven repayment (IDR) plans. Three existing IDR plans are being phased out, while a new 'RAP' plan is set to launch on July 1, 2026. The SAVE plan was vacated by court order and subsequently eliminated by statute. The Income-Based Repayment (IBR) plan is the only legacy IDR plan that will remain permanently, requiring borrowers to understand new eligibility rules and available options.