The Secure 2.0 Act lets employers treat student loan payments as 401k contributions. When an employee pays their loan, the company can deposit a matching amount into their retirement account, eliminating the need to choose between paying debt and saving for retirement.
With the SAVE plan ending, borrowers who fail to choose a new repayment plan within 90 days will be automatically placed into a standard plan. This plan disregards income and splits the balance over a fixed term, potentially causing payments to skyrocket from $0 to hundreds overnight.
Under the new Repayment Assistance Plan (RAP), if a borrower's monthly payment doesn't cover the accrued interest, the government pays the difference. This unique feature ensures that the loan balance will not increase over time, a common and demoralizing problem with other income-driven plans.
The new RAP plan bases payments on adjusted gross income. By filing taxes separately, a spouse with student debt can have their payment calculated solely on their own income. This can significantly reduce monthly payments, but requires weighing the benefit against losing certain tax breaks.