Melissa Dezendorf faces financial uncertainty as the administration transitions student loan borrowers from the SAVE plan to the new RAP plan.
Melissa Dezendorf, a veterinarian from New Mexico, is among millions of borrowers navigating a period of significant volatility in student loan policy. After the administration announced the SAVE plan as a highly affordable repayment option, the program faced legal challenges and was eventually phased out by the administration. To replace it, the administration introduced the Repayment Assistance Plan (RAP). Unlike the SAVE plan, which allowed for payments as low as zero dollars, RAP requires borrowers to pay between 1% and 10% of their earnings. While the RAP plan offers an interest waiver and a principal match for on-time payments, it lacks the flexibility of its predecessor. Dezendorf expressed frustration over the shifting policies, noting that the government's frequent changes have left many borrowers feeling uneasy. Experts suggest that the inconsistency in federal messaging may lead to higher delinquency rates. To ensure stability, the administration emphasizes that RAP is Congressionally authorized, providing a more permanent framework for borrowers seeking to manage their debt.