Fundamentals About Repayment Assistance Plan One Doesn’t Know
A repayment assistance plan is offered to eligible federal student loan borrowers. The plan may help undergrads, undergraduates, and graduates in their quest to get out of debt. It’s much better to solve any issues or problems when they are just minor because one will pay the cost of delay later on. Most things improve with proper care and maintenance. One needs to remember that their loans are no exception.
A repayment assistance plan helps low-income borrowers.
The Department of Education provides a plan for flexible repayment options for federal loans. The repayment assistance plan (RAP) is a special program that helps low-income borrowers get out of default and back on track to repay their loans. The RAP program is available to all borrowers with federal student loans who have missed at least one monthly payment, are in default, or are working with the Department of Education or a non-profit student loan servicer to help them return to good standing.
One can apply for the Repayment Assistance Plan to meet certain income requirements. One needs to complete an application once and return to good standing on their loans. It’s important to know that the RAP program only helps current students and recent graduates; it doesn’t help people who are disabled or are seeking loan forgiveness through bankruptcy. Treatment under the RAP program lasts for up to 36 months, and their payments will be based on their discretionary income or 20 percent of total income, whichever is greater. The Department of Education will try to collect payments from one during this time. If one misses another payment after completing RAP, their loans could go back into default.