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The Repayment Assistance Plan (RAP) is the new federal income-driven repayment plan that opens July 1, 2026, setting your monthly payment at 1% to 10% of your income, minus $50 per dependent, with a $10 minimum and forgiveness after 30 years. It replaces SAVE as the main income-driven option and is the only income-driven plan for people who first borrow on or after July 1, 2026.
What is the Repayment Assistance Plan (RAP)?
RAP is an income-driven repayment plan created by the 2025 budget law and launched July 1, 2026. Instead of basing your payment on your loan balance, it bases it on your income, so the payment rises and falls with what you earn. Two features make RAP different from older plans: it waives unpaid interest each month so your balance does not grow, and it adds up to $50 toward your principal when your payment alone does not cover that much, according to the U.S. Department of Education.
Key Takeaways
- Payment: 1% to 10% of your adjusted gross income (AGI), based on income bands.
- Dependents: each one lowers your payment by $50.
- Minimum: $10 a month, no matter how low your income.
- Balance protection: unpaid interest is waived, and up to $50/month goes to principal.
- Forgiveness: remaining balance is forgiven after 360 payments, which is 30 years.
How is the RAP payment calculated?
RAP applies a percentage to your AGI, then subtracts $50 for each dependent, and never goes below $10 a month. The percentage starts at 1% and rises one point for roughly every $10,000 of income, capping at 10% above $100,000. The formula looks like this:
Monthly payment = (AGI × your bracket percentage) ÷ 12 − ($50 × number of dependents), with a $10 minimum.
Here is the official-style anchor example: a single borrower with an AGI of $55,000 and no dependents falls in the 5% band, so the math is $55,000 × 5% = $2,750 a year, divided by 12, which is about $229 a month.
RAP income brackets
| Adjusted gross income (AGI) | Payment percentage |
|---|---|
| $10,000 or less | $10/month flat (minimum) |
| $10,001 – $20,000 | 1% |
| $20,001 – $30,000 | 2% |
| $30,001 – $40,000 | 3% |
| $40,001 – $50,000 | 4% |
| $50,001 – $60,000 | 5% |
| $60,001 – $70,000 | 6% |
| $70,001 – $80,000 | 7% |
| $80,001 – $90,000 | 8% |
| $90,001 – $100,000 | 9% |
| More than $100,000 | 10% |
Because the payment is based on AGI and not balance, two borrowers with the same income pay the same monthly amount even if one owes far more. The balance only changes how long it takes to pay off or reach forgiveness. Confirm the exact bracket that applies to you at studentaid.gov.
What does the $50 dependent reduction do?
Each dependent you claim lowers your monthly RAP payment by $50. A borrower earning $60,000 with two kids starts at 5% of income, which is $250 a month, then subtracts $100 for the two dependents, landing at $150 a month. That is the same payment as a single borrower earning $45,000, which shows how much the dependent benefit can matter for families.
If the dependent reduction would push your payment below $10, you still pay the $10 minimum.
What is the $50 principal match, and how is it different?
The $50 principal match helps your balance, not your payment. When you make an on-time payment that does not reduce your principal by at least $50, the Department adds up to $50 toward your principal that month. Combined with the interest waiver, this means a RAP borrower making on-time payments will not watch their balance grow, and will see at least some principal progress even when the payment is small.
Keep these two things separate in your head: the percentage-of-income formula sets what you pay, while the interest waiver and $50 match quietly improve what you owe.
Estimate your RAP payment
Enter your income and dependents to see an estimate. Treat it as a starting point and confirm the official figure when you apply.
RAP Payment Estimator
Who qualifies for RAP, and when is forgiveness?
Most federal Direct Loan borrowers can choose RAP starting July 1, 2026. Borrowers who take out new loans on or after that date have RAP as their only income-driven option. Remaining debt is forgiven after 360 qualifying payments, which is at least 30 years. RAP also counts toward Public Service Loan Forgiveness, so public-service workers can still reach forgiveness in 10 years through their job. See PSLF in 2026 for that path.
Is RAP the right plan for you?
RAP fits many lower and middle earners because of the $10 floor, the interest waiver, and the principal match. It is not automatically the cheapest plan for everyone, though. Higher earners can find RAP’s flat percentage of AGI more expensive than Income-Based Repayment, which protects a poverty-line amount first. To compare directly, read RAP vs IBR, and for the fixed-term option with no forgiveness, see the Tiered Standard Plan.
Frequently asked questions
When can I sign up for RAP?
RAP is expected to be available on studentaid.gov starting July 1, 2026. The application takes about 10 minutes, and it is faster if you let the Department pull your income directly from the IRS.
Will my RAP payment change every year?
Yes. Because RAP is based on your income, your payment can change when your income or dependents change and when you recertify. A raise can raise your payment; a drop can lower it.
Does RAP have a $0 payment option?
No. RAP’s minimum is $10 a month, so even very low earners pay at least $10. The $50-per-dependent reduction can bring families down to that floor.
How is RAP different from SAVE?
SAVE, which ends July 1, 2026, allowed $0 payments for many borrowers. RAP has a $10 minimum and a different formula, but it adds the interest waiver and the $50 principal match, which SAVE handled differently.
Does refinancing affect RAP eligibility?
Yes. Refinancing federal loans into a private loan permanently removes RAP and all other federal repayment and forgiveness options. Only consider it if you will not use federal protections.
Bottom line: RAP bases your payment on income (1% to 10% of AGI, minus $50 per dependent, $10 minimum), stops your balance from growing, and forgives the rest after 30 years. It is the default income-driven plan in 2026, but run your numbers against IBR before you choose.
For the full picture of every July 1 change, see our hub on student loan changes in 2026.
A quick note: this guide is here to help you understand your options, not to act as personal financial, legal, or tax advice. Repayment plan rules and dates come from the U.S. Department of Education and can change over time, so it is always worth checking your own numbers and deadlines at studentaid.gov or with your loan servicer before you make a move.
