How the RAP payment is calculated
The Repayment Assistance Plan was created by the One Big Beautiful Bill Act (Public Law 119-21) and opened on July 1, 2026. It is the only income-driven plan for federal loans first disbursed on or after that date, and existing borrowers can switch to it.
| AGI | RAP rate | AGI | RAP rate |
|---|---|---|---|
| $10,000 or less | $10/month | $50,001–$60,000 | 5% |
| $10,001–$20,000 | 1% | $60,001–$70,000 | 6% |
| $20,001–$30,000 | 2% | $70,001–$80,000 | 7% |
| $30,001–$40,000 | 3% | $80,001–$90,000 | 8% |
| $40,001–$50,000 | 4% | $90,001–$100,000 | 9% |
| Over $100,000 | 10% | ||
Interest waiver and principal match
When your on-time payment does not cover the month's interest, the unpaid interest is waived, so your balance never grows. If your payment lowers your principal by less than $50, the Department adds a match so the principal falls by up to $50 (never more than you paid). This calculator applies both every month and projects your income growth year by year.
Example
A single borrower with no dependents and $55,000 AGI is in the 5% bracket: $55,000 × 5% ÷ 12 = $229.17 a month. With one dependent, the payment drops to $179.17.
Frequently asked questions
How is the RAP payment calculated?
Your AGI is multiplied by a rate from 1% to 10% depending on your income bracket, divided by 12, and reduced by $50 for each dependent. The payment cannot fall below $10 a month.
When did RAP start?
RAP became available on July 1, 2026. Loans first disbursed on or after that date can only use RAP or the Tiered Standard plan.
Is RAP forgiveness taxable?
Federal law currently excludes student loan forgiveness from income only through 2025, so forgiveness after 30 years may be taxable unless Congress changes the rules. Check with a tax professional.
Can Parent PLUS loans use RAP?
No. Parent PLUS loans, and consolidation loans that include them, are not eligible for RAP.
What is the RAP principal match?
If your on-time payment reduces your principal by less than $50, the government adds a matching amount so your principal drops by up to $50, never more than your payment.
Is RAP better than the Tiered Standard plan?
RAP usually has lower payments on modest incomes but can last up to 30 years. Tiered Standard has fixed payments over 10 to 25 years based on your balance. Compare both in the calculator above.
Sources
- Congressional Research Service: The Repayment Assistance Plan (RAP) in P.L. 119-21
- Edfinancial (federal servicer): Repayment Assistance Plan
- NerdWallet: What is the Repayment Assistance Plan?
Estimates only, based on the RAP rules in P.L. 119-21 as published in 2026. Your servicer's figures are final. Projections assume on-time payments, a fixed interest rate and the income growth you enter. Not financial advice.