RAP sets your monthly student loan payment at 1% to 10% of your adjusted gross income (AGI) divided by 12, depending on which $10,000 income bracket you fall in, with a $10 minimum. Each dependent on your tax return cuts the payment by $50 a month. If your payment doesn’t cover the month’s interest, the rest is waived, and if it reduces principal by less than $50 the government adds a match of up to $50. Any balance left after 360 qualifying payments (30 years) is forgiven.
What is the Repayment Assistance Plan?
RAP is the income-driven repayment (IDR) plan written into the One Big Beautiful Bill Act (OBBBA), signed in July 2025. It opened on July 1, 2026, the same day the Tiered Standard plan launched. For anyone who takes out a federal Direct Loan — or consolidates — on or after that date, RAP is the only income-driven option; the alternative is the fixed-payment Tiered Standard plan. Borrowers whose loans all predate July 1, 2026 can also choose RAP, but they keep IBR as well, while PAYE and ICR are being phased out by July 1, 2028 and SAVE has already ended.
RAP is simpler than the plans it replaces: there is no “discretionary income” calculation and no poverty-line deduction. The payment is a flat percentage of your total AGI, with the percentage stepping up one point for every $10,000 of income. That makes RAP easy to estimate — and it means low earners pay more than they did under SAVE, while some middle earners pay less than on IBR.
RAP payment chart by income (2026)
The rate applies to your whole AGI once you cross into a bracket — it is not a marginal rate like income tax. Monthly payment = AGI × bracket rate ÷ 12, minus $50 per dependent, never below $10.
| AGI | RAP rate | Monthly payment at top of bracket | With 2 dependents |
|---|---|---|---|
| $0–$10,000 | $10 flat | $10 | $10 |
| $10,001–$20,000 | 1% | $17 | $10 |
| $20,001–$30,000 | 2% | $50 | $10 |
| $30,001–$40,000 | 3% | $100 | $10 |
| $40,001–$50,000 | 4% | $167 | $67 |
| $50,001–$60,000 | 5% | $250 | $150 |
| $60,001–$70,000 | 6% | $350 | $250 |
| $70,001–$80,000 | 7% | $467 | $367 |
| $80,001–$90,000 | 8% | $600 | $500 |
| $90,001–$100,000 | 9% | $750 | $650 |
| $100,001 and up | 10% | $833+ | — |
Because the percentage applies to all income, crossing a bracket line causes a small jump. Earning $50,000 gives a $167 payment; $50,001 gives $208. At the top, $100,000 means $750 and $100,001 means $833. A pre-tax 401(k) or HSA contribution lowers AGI and can drop you back a bracket.
The interest waiver and the $50 principal match
Two features stop RAP balances from ballooning the way they often did under older IDR plans. First, any interest your on-time payment doesn’t cover is waived rather than added to the balance. Second, if your payment reduces principal by less than $50 in a month, the Department of Education makes a matching payment of up to $50 toward principal.
The Education Department’s own example: a borrower owing $35,000 with $45,000 of income pays $150 a month on RAP. Monthly interest at 6.52% is about $190, so roughly $40 of interest is waived, and because none of the payment reaches principal the government adds $50. The balance falls by $50 every month even though the payment is below the interest.
RAP examples: how long until the loan is gone?
Because the payment follows income rather than the balance, the payoff date depends on both. Our projections (income +3% a year, payments reset yearly):
| Borrower | First payment | Payoff | Total paid | Interest waived | Forgiven |
|---|---|---|---|---|---|
| $30,000 at 6.52%, AGI $50,000, single | $167 | 14 yr | $48,014 | $0 | $0 |
| $80,000 at 8.07%, AGI $60,000, 1 dependent | $200 | 25 yr 11 mo | $178,287 | $24,591 | $0 |
| $150,000 at 8.07%, AGI $90,000, 2 dependents | $500 | 30 yrs | $387,513 | $33,135 | $21,700 |
Most borrowers with moderate balances pay RAP loans off well before the 30-year mark. Forgiveness matters mainly for large balances relative to income — and note that IDR forgiveness granted from 2026 onward is taxable federal income unless Congress changes the law.
Who can use RAP — and who can’t
- Eligible: federal Direct Loans (subsidized, unsubsidized, Grad PLUS, and Direct Consolidation Loans that don’t repay a Parent PLUS loan).
- Not eligible: Parent PLUS loans and consolidation loans that include Parent PLUS; private loans.
- New loans after July 1, 2026: choose RAP or the Tiered Standard plan.
- Older loans: you may switch to RAP, or stay on IBR or a standard plan. PAYE and ICR enrollees must move by July 1, 2028.
- PSLF: RAP payments count toward the 120 qualifying payments for Public Service Loan Forgiveness.
RAP uses the AGI and dependents on your federal tax return. Married couples who file jointly have their combined AGI counted; filing separately keeps a spouse’s income out, which can lower the payment but may cost more in tax — run both before you file.
Estimate your own RAP paymentEnter your balance, rate, AGI and dependents in our student loan calculator, then compare with your take-home pay.
RAP vs the Tiered Standard plan: which should you pick?
Choose the Tiered Standard plan if your income is high relative to your debt and you want a fixed end date — but remember its payments do not count for PSLF. Choose RAP if your payment on the standard schedule would be more than roughly 10% of your income, if you work in public service, or if your income is unpredictable. You can usually switch later, so many borrowers start on RAP while income is low and pay extra when it rises.
Compare a single borrower with $60,000 of 8.07% graduate debt: the 20-year tiered payment is $504. RAP at $55,000 AGI is $229; at $110,000 AGI it is $917 — above the tiered payment, which is when RAP stops being the cheaper monthly option.
Frequently asked questions
How is the RAP payment calculated?
Find your AGI bracket: $10,000 or less pays $10 a month; above that the rate is 1% for $10,001–$20,000 rising one point per $10,000 to 10% above $100,000. Multiply AGI by the rate, divide by 12, subtract $50 for each dependent, and the result can’t be lower than $10.
When did RAP start?
RAP became available on July 1, 2026 under the One Big Beautiful Bill Act.
Does RAP forgive student loans?
Yes. Any balance left after 360 qualifying monthly payments (30 years) is forgiven. Public service workers can get tax-free forgiveness sooner through PSLF, since RAP payments count toward its 120 payments.
Can Parent PLUS borrowers use RAP?
No. Parent PLUS loans and consolidation loans that include Parent PLUS are not eligible for RAP.
Does interest grow my balance on RAP?
No. If an on-time payment doesn’t cover the month’s interest, the unpaid interest is waived, and a principal match of up to $50 ensures the balance falls.
Is there a $0 payment on RAP?
No. Unlike IBR, RAP has a minimum payment of $10 a month, even with zero income.
Related student loan guides
- IBR vs RAPWhich income-driven plan is cheaper
- Tiered Standard plan10, 15, 20 or 25 years by balance
- SAVE plan ended: what now?Deadlines and your options
- PSLF basics 2026120 payments, tax-free forgiveness
- Is forgiveness taxable?The 2026 IDR tax bomb
- New student loan limits 2026Grad PLUS ends, $100k / $200k caps
- Monthly payment on $30,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $60,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $100,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- U.S. Department of Education, “Fact Sheet: Trump Administration Simplifying Student Loan Repayment” (ed.gov, page reviewed June 11, 2026).
- NerdWallet, “What Is the New Repayment Assistance Plan (RAP)?” (updated July 30, 2026) — RAP AGI brackets.
- FSA Dear Colleague Letter GEN-25-04, “Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act” (July 18, 2025).
- NASFAA (Jan 7, 2026) and Student Loan Planner (July 30, 2026): IDR forgiveness taxable federally from 2026; PSLF forgiveness tax-free.
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.