RAP FAQ: Your Repayment Assistance Plan Questions

RAP is a new federal income-driven repayment plan created by the 2025 reconciliation law (P.L. 119-21). It sets your monthly student loan payment as a percentage of your Adjusted Gross Income (AGI) — from a $10 flat minimum up to 10% — and becomes available on July 1, 2026.

The official name is the Repayment Assistance Plan — a repayment plan, not a “program.” It is often mistyped as “repayment assistance program” or “repayment assistant plan,” but they all refer to the same thing: RAP.

RAP becomes available on July 1, 2026. Enrollment is expected to open on StudentAid.gov on that date.

Enrollment is expected through StudentAid.gov starting July 1, 2026. You will choose RAP as your repayment plan and certify your income; your servicer then applies the RAP formula. Before then, there is no way to enroll.

No. RAP is optional. Borrowers with existing loans can stay on plans like IBR (or switch to RAP) until July 1, 2028; after that, the income-driven choices are RAP and IBR. For loans first disbursed on or after July 1, 2026, RAP is the only income-driven plan available, but you can also choose a fixed Standard plan.

Borrowers with eligible federal Direct Loans can use RAP starting July 1, 2026. Parent PLUS loans — and consolidation loans that repaid a Parent PLUS loan — are not eligible for RAP.

RAP applies a bracket percentage to your full AGI, divides by 12, and subtracts $50 per dependent: (AGI × rate ÷ 12) − ($50 × dependents). Rates run from 1% (AGI of $10,001–$20,000) up to 10% (AGI over $100,000). AGI of $10,000 or less pays a flat $10/month.

The minimum is $10 per month. Your payment can never fall below it, even if your income drops to zero.

Yes — RAP subtracts $50 per month for each dependent you claim on your federal tax return, down to the $10 minimum.

If your monthly payment reduces your principal by less than $50, the government contributes up to $50 toward your principal — so your balance always goes down with an on-time payment.

If your RAP payment does not cover the interest that accrues that month, the remaining unpaid interest is waived — so your balance does not grow from unpaid interest.

Any remaining balance is forgiven after 30 years (360 qualifying monthly payments). Borrowers pursuing PSLF can reach tax-free forgiveness in 10 years (120 payments) instead.

PSLF forgiveness (after 120 payments) is tax-free. The standard RAP forgiveness after 30 years is treated as taxable income under current rules — a key reason PSLF-eligible borrowers pursue the 10-year path.

Yes. On-time payments made under RAP count toward the 120 qualifying payments required for Public Service Loan Forgiveness.

It depends on your income and family size. RAP often wins for lower and middle incomes; IBR and PAYE can be cheaper at higher incomes because they shelter part of your income first. SAVE was vacated and is no longer available. Use the calculator to compare RAP and IBR for your numbers.

They are being phased out. SAVE was struck down in court. PAYE closes to new enrollment on July 1, 2027, and SAVE, PAYE, and ICR all end on July 1, 2028 — after which the only income-driven plans are RAP and IBR.