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.
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