From SAVE to RAP: How New Repayment Rules Reshape Student Debt Outcomes for a Typical Undergraduate Borrower

A closer look at monthly payments, lifetime costs, and the trade-offs for a typical undergraduate entering repayment under changing federal policies

Abstract

The shift from the Biden administration’s Saving on a Valuable Education (SAVE) plan to the new Repayment Assistance Plan (RAP) program alters monthly and long-term repayment patterns for student loan borrowers and costs to taxpayers. The paper describes both the SAVE and RAP programs and considers ramifications for a “typical” undergraduate stu…