“Students should not be asked to pay more on their loans than they can afford. cap repayment to an affordable portion of a borrower's income--12.5%”
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Trump's first-term budgets proposed consolidating income-driven repayment into a single plan capping monthly payments at 12.5% of income (e.g., the FY2020 budget, March 2019), but Congress never enacted it. On July 4, 2025 he signed the reconciliation law creating the Repayment Assistance Plan, which caps monthly payments at 1-10% of a borrower's income, with access for new borrowers starting July 1, 2026. A statutory income-based repayment cap thus became law under his signature, though at different terms than the promised 12.5% design and only in his second term, warranting partial credit.
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