Repayment Assistance Plan (RAP), explained
RAP, the federal student loan plan, started on July 1, 2026. Under it, you pay 1% to 10% of what's called your adjusted gross income (AGI). That drops by $50 for each dependent, and it's never less than $10 a month.
Calculate your own RAP payment
- Direct Loans qualify, but Parent PLUS doesn't
- You pay 1% to 10% of your AGI each year
- The lowest monthly bill is $10
- What's left is forgiven after 360 payments
1. Who qualifies for the RAP student loan program
Most people who have Direct Loans, meaning federal loans from the Department of Education, can use RAP. RAP is closed to Parent PLUS loans, which a parent borrows for a child's schooling. It's also closed to a consolidation loan (one loan that replaces several federal loans) that was used to pay off Parent PLUS loans. With a new loan taken out from July 1, 2026, you can pick only RAP or the Tiered Standard Plan, a plan with the same fixed payment.
Older loans have more options, for now. If your loans were taken out before then, Income-Based Repayment (IBR) is still open to you.
2. What changed: new rules for student loans from July 1, 2026
RAP began on July 1, 2026. For loan money first paid out to you or your school from July 1, 2026, your Direct Loans can use just two plans: RAP, or Tiered Standard (a fixed payment). SAVE, an older income-based plan, was ended by a court order on March 10, 2026. PAYE and ICR are two more older plans based on income. They close by July 1, 2028 at the latest.
Set up automatic payments, so the bank pays your bill every month, and your interest rate goes down by 1% (it used to be 0.25%). That discount runs from July 1, 2026 to June 30, 2028.
3. Working out your payment
The starting point for your payment is your adjusted gross income (AGI). Your tax return shows it on line 11. Look in the table to find your income range. Your yearly payment is that share of your whole AGI.
Show how it's worked out
| Your AGI | Yearly starting amount |
|---|---|
| $10,000 or less | $120 a year |
| Over $10,000, up to $20,000 | 1% of your AGI |
| Over $20,000, up to $30,000 | 2% of your AGI |
| Over $30,000, up to $40,000 | 3% of your AGI |
| Over $40,000, up to $50,000 | 4% of your AGI |
| Over $50,000, up to $60,000 | 5% of your AGI |
| Over $60,000, up to $70,000 | 6% of your AGI |
| Over $70,000, up to $80,000 | 7% of your AGI |
| Over $80,000, up to $90,000 | 8% of your AGI |
| Over $90,000, up to $100,000 | 9% of your AGI |
| Over $100,000 | 10% of your AGI |
Divide by 12 to turn the yearly starting amount into a monthly one. Deduct $50 for each person you claim as a dependent on your tax return. Your monthly bill never falls below $10. The official RAP definitions contain the full rules.
If you're married and file one tax return together, RAP usually counts both incomes. If your spouse has federal loans too, your bill goes down. If you're married and file separately, RAP counts only your income and the dependents on your own return.
Want your own number? Find your figure using your AGI and dependents.
4. How interest works
On some plans, what you owe goes up when your payment doesn't cover the interest. That doesn't happen on RAP. When you pay the full amount on time, the interest your payment didn't cover that month is dropped.
RAP also provides a principal match. What you borrowed is called the principal. If your payment cuts it by less than $50, the government pays the difference, up to $50. That way, what you owe goes down each month you pay on time.
5. When what you still owe is forgiven
After 360 qualifying payments (on-time payments that count), anything you still owe is forgiven. That's at least 30 years. Your RAP payments also count toward Public Service Loan Forgiveness (PSLF). If you work for a public employer, PSLF can still forgive your loans after 120 payments.
If you go back to IBR, ICR or PAYE, your RAP payments won't count toward forgiveness on that plan. So think it over before you switch.
6. A quick look at RAP and IBR
If all your loans were taken out before July 1, 2026, you can still choose Income-Based Repayment (IBR). Put your AGI, filing status and dependents into the RAP estimate to see what you'd pay on each.
| RAP | IBR | |
|---|---|---|
| What you pay | 1% to 10% of your whole AGI | 10% or 15% of whatever income exceeds 150% of the poverty line |
| Smallest payment | $10 a month | $0 |
| Highest payment | No limit | Never above the 10-year Standard payment, a fixed amount that pays off your loan in 10 years |
| Forgiveness | After 360 payments (30 years) | After 20 or 25 years |
Not sure if RAP would cost you the least? See the full RAP and IBR comparison.
7. RAP: how to switch
Have your latest tax return ready, including your AGI, filing status and the dependents you claim.
Apply on studentaid.gov with the income-driven repayment form. Pick RAP and say yes to sharing your tax details. It's the form for plans that base your payment on your income.
The company that sends your loan bill is your servicer. It makes the switch for you and then sends your new bill.
When your servicer asks each year, send them your latest tax return so they can update your payment. This yearly step is called recertifying.
Read RAP application steps. You can also look up your servicer.
Where this leads
Common questions
Is RAP capped the way IBR is?
RAP and ICR payments have no cap tied to the 10-year Standard amount, which is the fixed payment that clears what you owe in 10 years. So if you earn a lot, you might end up paying more than you would on IBR.
Is RAP available for Parent PLUS loans?
RAP can't be used for Parent PLUS loans, which a parent borrows for a child's schooling. It also can't be used for a consolidation loan (one loan that replaces several federal loans) if that loan paid off Parent PLUS loans.
Does the amount I pay change every year?
Yes, it does. Every year your servicer works out your payment again from your income and dependents.
Words and what they mean
- AGI
- Adjusted gross income is the total income on your tax return. The federal return shows it on line 11.
- Dependent
- Any person you claim on your tax return, a child for example.
- Principal
- What you borrowed, before any interest is added.
- Servicer
- The company that bills you for your loan and handles plan changes.
- IBR
- Income-Based Repayment: a plan based on your income that older loans can still use.
- The poverty line
- A low-income level the government sets, based on how many people are in your household. For a single person in the 48 states and DC, the yearly amount is $15,960. IBR uses 150% of that amount, which is $23,940.
- Standard payment over 10 years
- A fixed monthly amount that would clear the loan in 10 years.
- The Tiered Standard plan
- A plan with a fixed payment, spread over 10 to 25 years based on what you owe.
- Direct Loans
- Federal student loans issued by the Department of Education.
- A consolidation loan
- One loan that brings together several federal loans.
- Joint or separate filing
- If you and your spouse file one tax return together or two separate tax returns.
- Debit taken automatically from your bank
- Every month, the bank pays the loan bill for you.
- SAVE, PAYE and ICR
- Income-based plans from earlier years that have ended or are closing.
- A payment that counts
- A payment made on time that counts toward forgiveness.
- Recertify
- Each year, tell your servicer your income again so they can update your payment.
- Income-driven repayment
- A plan that bases your monthly payment on your income, not your balance.
Sources: Repayment plans from Federal Student Aid, Federal Student Aid, IDR updates.