# Student loan borrowers face sharply higher bills under Trump

> A new report shows borrowers switching from the SAVE plan to the new RAP plan could see annual payments jump by over two thousand dollars.
- Title: Student loan borrowers face sharply higher bills under Trump
- Summary: A new report shows borrowers switching from the SAVE plan to the new RAP plan could see annual payments jump by over two thousand dollars. Student loan…
- Keywords: student loans, trump administration, repayment plans, save plan, rap plan, debt relief, center for american progress, business, technology, Student, loan, borrowers
- Source: Business Insider — https://businessinsider.com/student-loan-borrowers-parents-surging-monthly-payments-debt-relief-bills-2026-10
- Author: Ayelet Sheffey
- Published: 2026-10-19T13:00:01.26+00:00
- Read time: 1 min
- Topics: student loans, trump administration, repayment plans, save plan, rap plan, debt relief, center for american progress, business, technology
## New report on Trump's loan changes
The Center for American Progress released a report showing how President Donald Trump's student-loan repayment overhaul will affect millions of borrowers' bills and relief options.
## What changed on July 1
Trump's student-loan changes, signed into law in his spending legislation, took effect July 1 and included new income-driven repayment plans and borrowing caps.
## Average payment increases jump sharply
Borrowers moving from the Biden-era SAVE plan to the new Repayment Assistance Plan, or RAP, could see their student-loan bills increase by two thousand one hundred sixty-three dollars annually on average.
## A typical borrower's payment doubles
A typical borrower with a bachelor's degree earning about sixty-eight thousand six hundred fifteen dollars annually would see monthly payments increase from one hundred thirty-six dollars to three hundred forty-three dollars.
## SAVE allowed zero-dollar payments
The SAVE plan allowed for lower payments and a shorter timeline to debt relief, including zero-dollar monthly payments. RAP's minimum payment is ten dollars, eliminating that protection.

> Those $0 payments were a really important protection that many borrowers will struggle without.
## Parents face new borrowing limits
Parents who took out loans after July 1, 2026, face a lifetime borrowing cap of sixty-five thousand dollars and lose access to the income-contingent repayment plan.
## Deferment option eliminated next year
The repayment overhaul eliminates all borrowers' ability to defer loan payments during economic hardship or unemployment beginning next year, raising default risk significantly.

> And without those options, borrowers may be more likely to become delinquent on their loans or eventually default, which we know can come with some devastating consequences.
## Key takeaway

Student loan borrowers switching to Trump's new repayment plan face average annual payment increases of two thousand one hundred sixty-three dollars, with fewer relief options and higher default risk.