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%. It opened to borrowers 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 opened on July 1, 2026, on schedule. Enrollment went live on StudentAid.gov that day, and the Department of Education reported nearly 46,000 applications on day one.

Apply on StudentAid.gov: choose RAP as your repayment plan and either authorize the IRS data share or upload your own income documentation. The application takes about 10 minutes; your servicer then processes the switch and applies the RAP formula. If your income has dropped since your last tax return, you can submit alternative documentation. Keep paying on your current plan until the new amount appears on your account — processing can take weeks.

SAVE was vacated in court and servicers started sending notices on July 1, 2026. Each notice opens a personal 90-day window to pick a new plan; notices are going out in waves, so deadlines differ by borrower. If you do nothing, you are placed on the Standard plan (or the Tiered Standard plan for loans that entered repayment on or after July 1, 2026), which is usually a higher payment. You do not have to wait for the notice — you can switch to RAP or IBR now.

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 now. 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 and its borrowers are being moved off it in waves with a 90-day window each. 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.