What Is the Repayment Assistance Plan (RAP)?
The Repayment Assistance Plan (RAP) is a new federal income-driven repayment plan for student loans, created by the One Big Beautiful Bill Act and effective July 1, 2026. Here's everything you need to know.
RAP at a Glance
RAP is the newest income-driven repayment (IDR) plan for federal student loans. It replaces the SAVE plan (which was vacated by court rulings) and offers a simplified payment formula, an interest subsidy, and a unique government principal match. RAP affects an estimated 42.7 million federal student loan borrowers.
AGI-Based Brackets
Payments are a flat percentage of your total AGI, from 1% to 10%, across 11 income brackets. No discretionary income calculation required.
$50 Dependent Deduction
Your monthly payment is reduced by $50 for each dependent you claim, making RAP more affordable for families.
Interest Subsidy
If your payment doesn't cover all accruing interest, the government pays the difference. Your balance never grows due to unpaid interest.
$50 Principal Match
The government contributes an additional $50/month toward your principal when you make on-time payments — exclusive to RAP.
30-Year Forgiveness
Any remaining balance is forgiven after 30 years of qualifying payments. PSLF borrowers still get forgiveness after 10 years.
$10 Minimum Payment
Every borrower pays at least $10/month, even at the lowest income levels or with many dependents.
How RAP Calculates Your Monthly Payment
Unlike IBR, which uses discretionary income (AGI minus 150% of the Federal Poverty Level), RAP applies a flat percentage directly to your total Adjusted Gross Income. The percentage increases as your income rises through 11 brackets:
| AGI Range | Rate | Example Annual Payment |
|---|---|---|
| $0 – $10,000 | Flat $120/year | $120 |
| $10,001 – $20,000 | 1% | $150 (at $15k) |
| $20,001 – $30,000 | 2% | $500 (at $25k) |
| $30,001 – $40,000 | 3% | $1,050 (at $35k) |
| $40,001 – $50,000 | 4% | $1,800 (at $45k) |
| $50,001 – $60,000 | 5% | $2,750 (at $55k) |
| $60,001 – $70,000 | 6% | $3,900 (at $65k) |
| $70,001 – $80,000 | 7% | $5,250 (at $75k) |
| $80,001 – $90,000 | 8% | $6,800 (at $85k) |
| $90,001 – $100,000 | 9% | $8,550 (at $95k) |
| $100,001+ | 10% | $12,000 (at $120k) |
After calculating the annual payment, divide by 12 to get your monthly amount, then subtract $50 for each dependent. The result is never less than $10/month.
Want to see your exact RAP payment?
Use the RAP CalculatorHow RAP Differs from Other IDR Plans
RAP introduces several fundamental changes compared to existing income-driven repayment plans like IBR, PAYE, and the now-defunct SAVE plan.
| Feature | RAP | IBR (New) | SAVE (Ended) |
|---|---|---|---|
| Payment basis | % of total AGI | % of discretionary income | % of discretionary income |
| Payment rate | 1% – 10% (tiered) | 10% flat | 5% – 10% (by loan type) |
| Dependent benefit | $50/mo per dependent | Included in FPL | Included in FPL |
| Interest subsidy | Full (balance never grows) | None | Full |
| Principal match | $50/mo | None | None |
| Forgiveness | 30 years | 20 years | 20 – 25 years |
| Payment cap | None | Standard plan amount | None |
| $0 payments possible | No ($10 minimum) | Yes | Yes |
Key Dates and Timeline
2025 — Law Enacted
The One Big Beautiful Bill Act (P.L. 119-21) is signed into law, creating the RAP plan and phasing out SAVE.
July 1, 2026 — RAP Enrollment Opens
Borrowers can begin enrolling in RAP through their federal loan servicer. New borrowers entering repayment choose between RAP, IBR, or Standard.
July 1, 2028 — Mandatory Transition
Borrowers still on SAVE, PAYE, or ICR must transition to RAP or IBR. These older plans close to new enrollees and eventually phase out entirely.
Who Should Choose RAP?
RAP is a good fit if you…
- ✓Want predictable payments based on simple AGI brackets
- ✓Want your balance to stop growing (interest subsidy)
- ✓Want the $50/month principal match to pay down your loans faster
- ✓Are pursuing PSLF and want the lowest qualifying payment
Consider IBR instead if you…
- ✓Have a large family and benefit from a higher FPL exclusion
- ✓Need the possibility of $0 payments
- ✓Want faster forgiveness (20 years vs. 30)
- ✓Want your payment capped at the standard plan level
Estimate Your RAP Payment
Use our free RAP Calculator to see your estimated monthly payment based on your income, dependents, and filing status.
Try the RAP CalculatorFrequently Asked Questions
More RAP Tools & Guides
RAP Calculator
Calculate your estimated monthly payment under the RAP plan.
RAP vs IBR Comparison
See which income-driven plan gives you a lower payment.
RAP Eligibility Checker
Check if your loans qualify for RAP enrollment.
Income Brackets Table
Full RAP payment table for every AGI range.
RAP Forgiveness Guide
Understand the 30-year forgiveness timeline under RAP.
SAVE to RAP Transition
Steps to transition from the SAVE plan to RAP.