Four Times the Cost, Twice the Time: The RAP Shift for $12,000 Borrowers

How replacing SAVE with RAP reshapes repayment, forgiveness, and the financial future of low-balance student borrowers

Introduction

The shift from President Biden’s SAVE Plan to President Trump’s proposed Repayment Assistance Plan (RAP) has major implications for students leaving college or community college with $12,000 or less in debt. The potential costs to taxpayers also differ substantially, as SAVE offers faster forgiveness and shifts more of the burden to the fede…