The Repayment Assistance Plan Explained

EPISODE RESOURCESDownload the updated IDR Guide!Repayment Assistance Plan (RAP) Explained: Eligibility, Payment Calculation, Subsidies, and Who Should Use ItThe episode breaks down the forthcoming Repayment Assistance Plan (RAP)! We dig into all the details ranging from who's eligible for RAP, to how Discretionary Income and protected income are thrown out the window when it comes to calculating payments. We cover scenarios where RAP saves money as compared to other options, and how to determine whether it's worth paying 5 to 10 years longer on RAP as compared to more conventional plans like IBR and PAYE.Check it out!00:00 RAP Overview02:00 New IDR Deadlines03:35 Guide Walkthrough04:05 Eligibility Basics04:35 No Protected Income06:02 Payment Formula08:00 Income Cliffs09:24 Dependent Discount09:57 No Hardship Cap11:17 Interest Subsidy15:08 30 Year Forgiveness15:48 Married Filing Separately16:27 Who Should Use RAP17:39 Low Income Example19:20 High Income Example21:53 Mega Borrower Tax Bomb27:27 Final Recommendations28:10 Wrap Up