What is the Repayment Assistance Plan (RAP)?
RAP is a new federal income-driven repayment plan created by the 2025 reconciliation law (P.L. 119-21). It becomes available on July 1, 2026, for borrowers with eligible Direct Loans. Instead of basing your payment on "discretionary income" like older plans, RAP charges a simple percentage of your total adjusted gross income (AGI). For anyone who takes out a new federal loan on or after July 1, 2026, RAP will be the only income-driven plan available.
How your RAP payment is calculated
RAP applies a flat percentage to your entire AGI — the percentage rises with income — then divides by 12 for a monthly amount. Each dependent lowers the payment by $50, and there is a $10 monthly minimum.
| Annual AGI | Payment rate |
|---|---|
| $10,000 or less | $10/mo (flat minimum) |
| $10,001 – $20,000 | 1% of AGI |
| $20,001 – $30,000 | 2% of AGI |
| $30,001 – $40,000 | 3% of AGI |
| $40,001 – $50,000 | 4% of AGI |
| $50,001 – $60,000 | 5% of AGI |
| $60,001 – $70,000 | 6% of AGI |
| $70,001 – $80,000 | 7% of AGI |
| $80,001 – $90,000 | 8% of AGI |
| $90,001 – $100,000 | 9% of AGI |
| Over $100,000 | 10% of AGI |
Notice what is not on that list: your loan balance. Under RAP, whether you owe $20,000 or $200,000, the monthly payment is the same — it depends only on income and dependents.
Three features that set RAP apart
Interest is waived if your payment can't cover it
If your monthly payment is smaller than the interest your loan accrues that month, RAP cancels the unpaid interest rather than adding it to your balance. That means your balance won't grow while you're making your required payment.
A matching principal payment
RAP adds a matching principal payment of up to $50 a month when your own payment chips away at less than $50 of principal — so your balance keeps shrinking even when your payment is low.
Forgiveness after 30 years
After 360 qualifying monthly payments (30 years), any remaining principal and interest is forgiven. That's longer than the 20–25 years under older income-driven plans, which matters most for borrowers who would otherwise reach forgiveness sooner.
Which loans are eligible for RAP?
Subsidized, Unsubsidized, Graduate PLUS, and most Consolidation Loans can be repaid under RAP. Parent PLUS Loans — and consolidation loans that include a Parent PLUS Loan — are not eligible.
Watch out: a new loan can change everything
If you have older loans and take out any new federal loan on or after July 1, 2026, RAP becomes the only income-driven plan available for all of your loans — and you lose the benefits and shorter timeline your old plan offered. If you're close to forgiveness on an existing plan, weigh new borrowing carefully.
Does RAP count toward PSLF?
Yes. RAP is a qualifying repayment plan for Public Service Loan Forgiveness. If you work full-time in qualifying public service and make 120 qualifying monthly payments, RAP payments count toward that total — relevant for teachers, nurses, and other public-sector borrowers.
Who RAP helps — and who may pay more
RAP isn't automatically better or worse than other plans. Borrowers with lower balances relative to income may pay their loans off faster and pay less overall, thanks to the interest waiver and principal match. But borrowers with very high balances relative to income — such as some professional-degree holders — may pay more over the life of the loan because of the longer 30-year term. And very-low-income borrowers lose the $0 payment that some older plans allowed, since RAP has a $10 minimum.
One more thing: RAP isn't indexed to inflation
The AGI brackets don't adjust for inflation. Over time, ordinary raises can push you into a higher percentage even if your real buying power barely changed — so your payment may climb faster than you'd expect across a long repayment period.
Frequently asked questions
What is the lowest possible RAP payment?
$10 per month. Even borrowers earning $10,000 or less, and those whose dependent reductions would drop the payment lower, pay at least the $10 minimum.
Does RAP look at how much I owe?
No. Your RAP payment is based only on your AGI and number of dependents. Your loan balance and interest rate don't change the required monthly payment (though they affect how quickly the balance falls).
When can I enroll in RAP?
RAP becomes available on July 1, 2026. Borrowers will enroll through their federal loan servicer or at StudentAid.gov, and the payment generally re-certifies each year based on updated income.
How are dependents counted?
RAP counts the dependents you claim on your federal tax return, as defined under IRS Section 152 — generally qualifying children or relatives. You don’t count yourself, and you don’t automatically count a spouse. Each dependent lowers your monthly payment by $50, down to the $10 minimum. When you enroll, the Department of Education pulls this number from your IRS tax data and re-checks it each year.
Does filing taxes separately change my RAP payment?
It can. If you’re married filing separately, only your own income and the dependents on your own return count toward your RAP payment. That can lower the payment when a spouse earns more — but filing separately may cost you certain tax credits and deductions, so it’s worth comparing both ways. RAP also closed the older loophole that let separated filers double-count the same children.
Is RAP better than SAVE or IBR?
It depends on your income, balance, family size, and goals. RAP replaces SAVE for affected borrowers and uses a different formula (flat AGI vs. discretionary income) with a longer forgiveness timeline. The best way to decide is to compare your actual payment and total cost under each plan you're eligible for.
Where can I confirm my numbers?
This tool gives an estimate. For your official payment and enrollment, use the U.S. Department of Education's Loan Simulator and your account at StudentAid.gov.