Repayment Assistance Plan (RAP)
New - available July 1, 2026 · Income-driven · counts toward PSLF
Repayment Assistance Plan (RAP). Monthly payment = a percentage of total adjusted gross income (AGI) on an 11-band sliding scale (flat $10/mo if AGI is $10,000 or less, then 1% to 10% of AGI), minus $50/month per dependent child, with a $10/month floor. Remaining balance forgiven after 360 qualifying monthly payments (30 years). Counts toward PSLF (120 payments in qualifying public-service work). General information, not advice.
Source: Federal Student Aid - OBBBA updates. Data as of June 2026.
General information, not financial or legal advice. Federal student loan rules are changing in 2025-2026 under the One Big Beautiful Bill Act - figures here are estimates from public sources and the final program rules are still being implemented. Always verify with your loan servicer and studentaid.gov. See our disclaimer.
How RAP works
Formula. Monthly payment = a percentage of total adjusted gross income (AGI) on an 11-band sliding scale (flat $10/mo if AGI is $10,000 or less, then 1% to 10% of AGI), minus $50/month per dependent child, with a $10/month floor.
Interest. Unpaid monthly interest is waived (not capitalized) when you make your scheduled payment, and a principal match of up to $50/month is applied if your payment does not cover at least $50 of principal.
Forgiveness. Remaining balance forgiven after 360 qualifying monthly payments (30 years). Counts toward PSLF (120 payments in qualifying public-service work).
Availability. Available July 1, 2026 to Direct Loan borrowers. The only income-driven option for borrowers whose first loan is on or after July 1, 2026.
RAP income bracket schedule
RAP places your total AGI into one of 11 bands, each with a payment percentage from 1% to 10% (a flat $10/month at the bottom). The result is divided by 12 for the monthly amount, then reduced by $50/month per dependent child, with a $10/month floor.
| Annual AGI band | RAP base payment |
|---|---|
| $0 - $10,000 | Flat $10/month |
| $10,001 - $20,000 | 1% of AGI |
| $20,001 - $30,000 | 2% of AGI |
| $30,001 - $40,000 | 3% of AGI |
| $40,001 - $50,000 | 4% of AGI |
| $50,001 - $60,000 | 5% of AGI |
| $60,001 - $70,000 | 6% of AGI |
| $70,001 - $80,000 | 7% of AGI |
| $80,001 - $90,000 | 8% of AGI |
| $90,001 - $100,000 | 9% of AGI |
| $100,001 and above | 10% of AGI |
Source: U.S. Department of Education Fact Sheet + Public Law 119-21 (OBBBA). Data as of June 2026.
Worked example
A borrower with $55,000 AGI and no dependents falls in the 5% band, so the base RAP payment is about $229.17/month (5% of $55,000 divided by 12). With no dependent reduction the estimated RAP payment is about $229.17/month. Each dependent child would cut that by $50. Unpaid interest is waived and up to $50/month of principal is matched.
Estimate only. Try the calculators with your own numbers.
Pros and cons
| Pros | Cons |
|---|---|
| Only new income-driven plan; required for PSLF for new borrowers | Uses total AGI, not discretionary income, so payments can be higher than legacy IDR for some incomes |
| Unpaid interest waived so the balance does not balloon | 30-year forgiveness clock (longer than new IBR's 20 years) unless pursuing PSLF |
| Up to $50/month principal match guarantees the balance shrinks | Parent PLUS loans are not eligible |
| $50/month reduction for each dependent child | Final program rules are still being implemented - verify at studentaid.gov |
Eligibility
Direct Loans (and Direct Consolidation Loans, with limits). Parent PLUS loans are excluded. The only IDR option for borrowers whose first loan is on or after July 1, 2026.
Frequently asked questions
Does RAP count toward PSLF?
Yes. Payments under Repayment Assistance Plan (RAP) count toward Public Service Loan Forgiveness (120 qualifying payments while working full-time for a qualifying public-service employer).
When is loan forgiveness under RAP?
Remaining balance forgiven after 360 qualifying monthly payments (30 years). Counts toward PSLF (120 payments in qualifying public-service work).
Who can use RAP in 2026?
Direct Loans (and Direct Consolidation Loans, with limits). Parent PLUS loans are excluded. The only IDR option for borrowers whose first loan is on or after July 1, 2026.
Compare with other plans
- New tiered Standard plan · New - default for loans on/after July 1, 2026
- Income-Based Repayment (IBR) · Remains available (existing borrowers)
- Standard 10-year plan · Continues for existing borrowers
- Graduated repayment plan · Continues for existing borrowers
- Extended repayment plan · Continues for existing borrowers (balance over $30,000)
- SAVE plan (Saving on a Valuable Education) · Closing - vacated by the courts; ending
- Pay As You Earn (PAYE) · Closing - sunsets July 1, 2028
- Income-Contingent Repayment (ICR) · Closing - sunsets July 1, 2028
Sources & accuracy
Plan rules from Federal Student Aid - OBBBA updates and the U.S. Dept of Education. Data as of June 2026. The 2025-2026 rules are still being implemented - this is general information, not financial or legal advice. Verify with your loan servicer and studentaid.gov. See our methodology and disclaimer.
Last updated: 2026-06-22