College Loan -

: Unlike previous plans that allowed for $0 payments, RAP requires a minimum payment of $10 per month , even for borrowers with no income.

: Now capped at $20,000 per year per student with a $65,000 lifetime limit.

The most significant "interesting" feature appearing in 2026 is the , a streamlined federal income-driven option that officially replaces older, more complex plans like SAVE and PAYE for new borrowers starting July 1, 2026 . Key Features of the New "RAP" Plan college loan

: Limited to $50,000 per year (lifetime cap of $200,000).

: Limited to $20,500 per year (lifetime cap of $100,000). : Unlike previous plans that allowed for $0

: Borrowers can subtract $50 per month from their calculated payment for each dependent child listed on their tax return.

: Any remaining balance is forgiven after 30 years of consistent repayment. Other Major Changes in 2026 Key Features of the New "RAP" Plan :

If you are looking to avoid traditional loans, consider these innovative options: Update on Federal Loan Changes Beginning in 2026