What is RAP (Repayment Assistance Plan)?

RAP is a new federal student-loan repayment plan effective July 1, 2026, created by P.L. 119-21 (the FY2025 Reconciliation Law). It replaces SAVE, REPAYE, and PAYE for new borrowers. Payment is 1-10% of AGI based on tiered income brackets, with a $50/dependent reduction and 30 years to forgiveness.

When does RAP take effect?

July 1, 2026. All federal student loans originated on or after that date will be eligible for RAP. Existing borrowers may have the option to switch from current plans to RAP — final rules from the Education Department expected late 2025 / early 2026.

How is RAP different from SAVE?

SAVE was based on a percentage of discretionary income (AGI minus 225% of poverty line) at 5-10%. RAP uses gross AGI directly with a tiered 1-10% structure — simpler but generally produces higher monthly payments at lower incomes. RAP has 30 years to forgiveness (SAVE had 10-25 years depending on balance).

What happens if my RAP payment doesn't cover interest?

The Education Department subsidizes the unpaid interest — your balance does not grow. RAP also includes a $50 principal-match: if your payment reduces principal by less than $50/month, the government adds up to $50 toward your principal. This is a unique feature designed to ensure low-income borrowers make progress.

Are Parent PLUS loans eligible for RAP?

No. Parent PLUS loans and consolidation loans that include any Parent PLUS loan are not eligible for RAP. They remain on Standard, Extended, or Graduated repayment plans only.

How long until loan forgiveness under RAP?

30 years (360 qualifying monthly payments). Forgiveness is automatic on the 30-year anniversary of entering repayment, regardless of remaining balance. Note: forgiven amount may be taxable as income depending on then-current law (TCJA tax-free forgiveness expires end of 2025).

Can I still get PSLF under RAP?

Yes. RAP payments count toward Public Service Loan Forgiveness (PSLF) just like other income-driven plans. If you work for a qualifying employer for 10 years (120 qualifying payments) on RAP, your remaining balance is forgiven tax-free.

Should I switch to RAP if I'm currently on SAVE / IBR / PAYE?

Depends. If you have low AGI and few dependents, your RAP payment may be higher than current SAVE. If you have many dependents, the $50/each reduction may make RAP cheaper. If you're close to 20-25 year forgiveness under current plans, staying may be better than restarting the 30-year clock under RAP. Wait for final Education Department rules before deciding.

How much will my payment be under RAP if I make $50,000 a year?

At $50,000 AGI your RAP payment is 5% of AGI ($50,000 crosses into the $50,001–$60,000 tier at the boundary): $2,500/year, about $208 per month with no dependents. With 2 dependents the $50-each reduction brings it to $108/month. At $49,999 the 4% tier applies instead: $2,000/year, about $167/month.

How much will my payment be under RAP if I make $3,000 a month?

$3,000/month is $36,000 AGI, which falls in the 3% tier ($30,001–$40,000). Annual obligation: $1,080 — about $90 per month with no dependents, or $40/month with one dependent ($50 reduction).

What will my RAP payment be if my AGI is $33,000, married filing separately?

When you file separately, RAP uses only your individual AGI — your spouse's income is excluded. At $33,000 AGI you're in the 3% tier ($30,001–$40,000), so the payment is $990/year, about $83/month with no dependents. Note that filing separately can raise your total household tax bill; compare both scenarios before choosing.

What happens if you can't pay on the RAP payment plan?

RAP's minimum payment is $10/month, and the tier structure means payments scale down with income — at $10,000 AGI or less the payment is 1% of AGI (max ~$8/month, so effectively the $10 minimum). If you still can't pay, standard federal options apply: deferment (economic hardship, unemployment) and forbearance pause payments, though months in forbearance generally don't count toward the 30-year forgiveness clock. Missed payments without a pause lead to delinquency at 90 days and default at 270 days.

When will my loans be forgiven under RAP — what's the payoff date?

RAP forgives the remaining balance after 360 qualifying monthly payments (30 years from entering repayment). A borrower starting RAP in July 2026 reaches forgiveness in July 2056 — unless the balance is paid off earlier through payments, the $50 principal match, or extra payments. PSLF-eligible borrowers can reach tax-free forgiveness in 10 years instead.

New federal plan · Effective July 1, 2026 · Updated July 5, 2026

RAP calculator: the new federal student-loan plan

The Repayment Assistance Plan (RAP) replaces SAVE on July 1, 2026 for all new federal student loans. Tiered 1-10% of AGI, $50 per dependent reduction, $10 minimum, 30 years to forgiveness. Worked payment examples by income below.

What would my monthly payment be on the RAP plan?

Your monthly RAP payment is calculated as a tiered percentage of your adjusted gross income (AGI), then reduced by $50 per dependent. The tier rates are: $10/month flat minimum if AGI is $10,000 or less; 1% of AGI if $10,001–$20,000; 2% if $20,001–$30,000; 3% if $30,001–$40,000; 4% if $40,001–$50,000; 5% if $50,001–$60,000; 6% if $60,001–$70,000; 7% if $70,001–$80,000; 8% if $80,001–$90,000; 9% if $90,001–$100,000; 10% if above $100,000. Minimum payment is $10 per month.

Quick examples (single, no dependents):

AGI $35,000 → 3% = $1,050/year → $88/month
AGI $45,000 → 4% = $1,800/year → $150/month
AGI $55,000 → 5% = $2,750/year → $229/month
AGI $75,000 → 7% = $5,250/year → $438/month
AGI $110,000 → 10% = $11,000/year → $917/month
AGI $55,000 + 2 dependents → $229 − $100 = $129/month

For a payment estimate with your exact AGI and dependent count, use the calculator below.

By Snowballr Research Team

Last reviewed July 5, 2026Fact-checked against primary sourcesEditorial standards

Coverage: Compound interest · Retirement · FIRE · Debt payoff · Mortgages · Fraud prevention

Built from: IRS · FINRA · SEC · BLS · Federal Reserve · Freddie Mac30+ primary sources verified

Methodology & sourcesHow we review →

Short answer · Quick examples

$50K AGI, 0 dependents: ~$208/mo (5% of AGI).
$75K AGI, 2 dependents: ~$338/mo (7% minus $100 for kids).
$100K AGI, 0 dependents: ~$833/mo (10% of AGI cap).

RAP tiered payment structure

AGI bracket	% of AGI	Notes
$0 – $10,000	—	$10 flat minimum
$10,000 – $20,000	1%	1% of AGI
$20,000 – $30,000	2%	2% of AGI
$30,000 – $40,000	3%	3% of AGI
$40,000 – $50,000	4%	4% of AGI
$50,000 – $60,000	5%	5% of AGI
$60,000 – $70,000	6%	6% of AGI
$70,000 – $80,000	7%	7% of AGI
$80,000 – $90,000	8%	8% of AGI
$90,000 – $100,000	9%	9% of AGI
$100,000+	10%	Cap: 10% of AGI

Monthly payment by AGI (worked examples)

AGI	0 dep.	1 dep.	2 dep.	3 dep.	Tier
$15,000	$13	$10	$10	$10	1%
$25,000	$42	$10	$10	$10	2%
$35,000	$88	$38	$10	$10	3%
$45,000	$150	$100	$50	$10	4%
$55,000	$229	$179	$129	$79	5%
$65,000	$325	$275	$225	$175	6%
$75,000	$438	$388	$338	$288	7%
$85,000	$567	$517	$467	$417	8%
$100,000	$833	$783	$733	$683	10%
$150,000	$1,250	$1,200	$1,150	$1,100	10%

Each dependent reduces monthly payment by $50, but minimum is always $10. Verify your AGI from line 11 of your most recent 1040.

How RAP works step-by-step

Apply through StudentAid.gov: starting July 1, 2026 for new borrowers. Existing borrowers may opt in once Education Department rules are finalized.
Recertify annually: each year you submit updated tax info. A raise into a new bracket increases your payment the following year.
Pay at least the minimum: $10/month or your tiered % of AGI minus $50/dependent, whichever is higher.
Interest subsidy kicks in if payment < accrued interest: government covers the gap. Your balance does NOT grow.
$50 principal match if you make progress < $50: government adds up to $50/month toward your principal to ensure forward motion.
Forgiveness at year 30: remaining balance forgiven after 360 qualifying payments. Tax treatment of forgiven amount is uncertain after 2025 (TCJA exclusion expires).

RAP vs SAVE vs IBR (key differences)

Feature	RAP (2026+)	SAVE (2024-2026)	Current IBR
Payment basis	% of AGI (tiered 1-10%)	% of discretionary (5-10%)	10-15% of discretionary
Minimum payment	$10/month	$0 below ~$32K AGI	$0 below ~150% poverty line
Dependent reduction	$50/each	Family-size-adjusted poverty	Family-size-adjusted poverty
Interest subsidy	Full (no growth)	Full	Partial (1st 3 yrs sub only)
Principal match	Up to $50/mo	None	None
Forgiveness term	30 years	10-25 yrs (by balance)	20-25 years
PSLF eligible	Yes (120 payments)	Yes	Yes
Parent PLUS	Not eligible	Limited	Not eligible

Who benefits from RAP vs other plans

RAP wins if you have 2+ dependents — the $50/each reduction can drop payment to zero faster than poverty-line-based plans for middle-income earners.
SAVE or IBR may win if you have low AGI and 0 dependents — discretionary-income basis ignores the first ~$33K of AGI; RAP starts charging at $10K.
Standard 10-year plan beats all IDR if you can afford it — pays off in 10 years, lower total interest, no 30-year drag.
PSLF on RAP works if you stay in qualifying employment — 120 payments at typically lower amounts than Standard = significant forgiveness.

Important caveat

RAP rules are based on the FY2025 Reconciliation Law (P.L. 119-21) and Education Department guidance available as of July 5, 2026. Final regulations may adjust specific thresholds or implementation details. Confirm at StudentAid.gov before making repayment decisions, and consider working with a Certified Student Loan Professional (CSLP) for high-balance situations.

Related calculators & guides

Sources: Congressional Research Service report IF13075 on P.L. 119-21; Department of Education guidance; NerdWallet, SoFi, The College Investor analyses (May 2026). Effective July 1, 2026. This page will be updated as final regulations are published.