New student loan plan comes with higher bills for many. Tax planning can help cut your payments
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- With a bit of strategy, federal student loan borrowers can lower their monthly bills on the U.S.
- Under the Repayment Assistance Plan, or RAP, borrowers pay a higher percentage of their income as their earnings grow.
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With a bit of strategy, federal student loan borrowers can lower their monthly bills on the U.S. Department of Education's new repayment plan, coming July 1.
Under the Repayment Assistance Plan, or RAP, borrowers pay a higher percentage of their income as their earnings grow. That means that finding ways to lower your pretax income by even a small amount can reduce your monthly student loan payments, said Landon Warmund, a certified financial planner and certified student loan professional at Reliant Financial Services in Kansas City, Missouri.