ORLANDO, Fla. — Some federal student loan borrowers leaving the SAVE repayment plan could face hundreds of dollars more in monthly payments, according to a new analysis by Freedom Debt Relief.
The company modeled 60 borrower profiles to compare payments under SAVE with the new Repayment Assistance Plan, or RAP. Its examples cover different income levels and households claiming zero through four tax dependents.
The comparison comes as former SAVE borrowers choose other repayment options. Federal Student Aid says borrowers should review their choices and the deadline in their loan servicer’s notice. RAP is one option, but eligibility for other plans depends on a borrower’s loans and borrowing history.
What the analysis found
Among the examples supplied by Freedom Debt Relief:
| $50,000–$60,000 | 1 | $26.29 | $179.17 | $152.88 |
| $60,000–$70,000 | 2 | $14.71 | $225.00 | $210.29 |
| $80,000–$90,000 | 3 | $44.79 | $416.67 | $371.88 |
| $90,000–$100,000 | 4 | $33.21 | $512.50 | $479.29 |
| $100,000–$125,000 | 4 | $106.13 | $737.50 | $631.37 |
These figures represent selected modeled scenarios, not guaranteed payments for everyone within those income ranges.
The $90,000–$100,000 example produced the largest percentage increase in the study, at approximately 1,443%. Its modeled monthly payment rose from $33.21 to $512.50.
Other examples produced larger dollar increases. A profile earning $125,000–$150,000 with four dependents showed an increase of $735.54 a month.
How RAP calculates payments
According to Federal Student Aid, RAP generally calculates monthly payments using 1% to 10% of adjusted gross income, divided by 12, with a $50 monthly reduction for each qualifying tax dependent. The minimum monthly payment is $10.
Borrowers should distinguish adjusted gross income from their salary or total household earnings when comparing estimates.
Compare options before switching
Freedom Debt Relief’s analysis compares SAVE with RAP. It does not establish that RAP is every borrower’s least expensive available option.
Borrowers can review the Federal Student Aid guide for people leaving SAVE and contact their servicer to confirm their deadline, available repayment plans and estimated bill.
Before selecting a plan, borrowers should compare monthly payments alongside repayment length and potential forgiveness benefits.
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