RAPpath How the Repayment Assistance Plan (RAP) Works
RAP is the new income-driven repayment plan that becomes available on July 1, 2026. Here is exactly how your payment is calculated.
The payment formula
RAP applies a percentage to your full Adjusted Gross Income (AGI), then subtracts a dependent reduction:
Monthly payment = (AGI × bracket rate ÷ 12) − ($50 × dependents)
The payment can never fall below $10 per month.
Income brackets
| Annual AGI | Rate |
|---|---|
| $0 – $10,000 | $10/mo flat |
| $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% |
| $100,001+ | 10% |
Built-in borrower protections
- Interest waiver: if your monthly payment doesn’t cover the interest that accrues, the remaining interest is waived.
- $50 principal match: if your payment reduces principal by less than $50, the government contributes up to $50 toward principal, so your balance always drops with on-time payments.
- Dependent reduction: $50/month off for each dependent on your tax return.
Forgiveness timeline
Any remaining balance is forgiven after 30 years (360 qualifying monthly payments). Borrowers pursuing Public Service Loan Forgiveness (PSLF) can still reach forgiveness in 10 years while paying under RAP.
A worked example
Say your Adjusted Gross Income is $65,000 and you claim two dependents. An AGI of $65,000 falls in the $60,001–$70,000 bracket, which carries a 6% rate. The calculation runs:
- Base payment: $65,000 × 6% ÷ 12 = $325/month
- Dependent reduction: 2 × $50 = −$100
- Estimated RAP payment: $225/month
Change any input and the number moves — a higher AGI shifts you into a higher bracket, and each dependent takes another $50 off. To run your own figures, use the RAP calculator, or see a full payment-by-income chart.
How RAP compares to other plans
RAP replaces the SAVE plan and sits alongside the older income-driven options. Which one is cheapest depends on your income, family size and balance, so it’s worth comparing before you enroll:
- RAP vs SAVE — what changes now that SAVE is ending
- RAP vs IBR — the two plans borrowers most often weigh
- RAP vs the Standard plan — income-driven vs a fixed 10-year payoff
- RAP and PSLF — reaching forgiveness in 10 years in public service
When RAP starts and whether you have to switch
RAP becomes available on July 1, 2026. It is one repayment option among several — you are not automatically moved onto it, and whether it lowers your payment depends on your situation. Borrowers on a plan that is being phased out may need to choose a new plan; if you’re unsure, estimate your RAP payment here first, then confirm your options and enroll through your loan servicer or at studentaid.gov.
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