Understanding the Repayment Assistance Plan (RAP) Student Loan Repayment Option
The Repayment Assistance Plan (RAP) is a new student loan repayment plan available starting July 1, 2026. RAP is designed to offer an income-based repayment structure with protections for low-income borrowers and families.
Who Can Enroll in RAP?
RAP is available to all Direct Loan borrowers, regardless of when your loan was made. However, RAP is not available to Parent PLUS borrowers or borrowers with excepted consolidation loans (unless those loans were consolidated before July 1, 2026).
RAP is also available for Direct Consolidation Loans made on or after July 1, 2026.
If you take out a new Direct Loan on or after July 1, 2026 and do not select a repayment plan, RAP will be one of your two default plan options (along with the Tiered Standard plan).
How Your Monthly Payment Is Calculated
Your monthly payment under RAP is based on your Adjusted Gross Income (AGI) using a sliding scale of 1% to 10% of your AGI. There is no income exemption — the full AGI amount is used in the calculation.
| AGI | Payment Rate |
|---|---|
| $10,000 | 1% of AGI |
| $20,000 | 2% of AGI |
| $30,000 | 3% of AGI |
| $40,000 | 4% of AGI |
| $50,000 | 5% of AGI |
| $60,000 | 6% of AGI |
| $70,000 | 7% of AGI |
| $80,000 | 8% of AGI |
| $90,000 | 9% of AGI |
| $100,000 or more | 10% of AGI |
To find your monthly amount, take your calculated annual payment and divide it by 12.
For each dependent, subtract $50 from your monthly payment.
If your calculated monthly payment is less than $10, you will pay the minimum of $10 per month (your final payment may be less if your remaining balance is lower).
Interest Subsidy and Principal Matching
RAP includes two important protections that help keep your balance manageable:
- Interest subsidy: If your on-time monthly payment does not fully cover the interest accruing on your loan, the Department of Education will waive the unpaid interest. This applies to all loan types and prevents your balance from growing due to unpaid interest.
- Principal matching: The Department will match your principal payments dollar-for-dollar, up to $50 per month. This helps reduce your loan balance faster.
Married Borrowers Filing Jointly
If you and your spouse file your taxes jointly, a single monthly payment will be calculated based on your combined income. That payment is then divided between each borrower based on their share of the combined total loan balance.
Loan Forgiveness
After making 360 qualifying on-time payments (30 years), your remaining loan balance may be forgiven.
RAP and Public Service Loan Forgiveness (PSLF)
RAP qualifies as an eligible repayment plan for Public Service Loan Forgiveness (PSLF). However, only on-time payments count toward PSLF — months spent in deferment or forbearance while on RAP do not count. Months in RAP also are not eligible for reconsideration-type credit relief.
Switching Repayment Plans
You are free to switch between RAP and the Tiered Standard repayment plan after you enter repayment. You are not locked into RAP once you enroll.
Availability for Older Repayment Plans
Some older income-driven repayment plans are being phased out. PAYE and ICR will sunset on July 1, 2028, and SAVE (formerly REPAYE) is no longer an eligible plan. If you are currently on one of these plans, you will need to transition to RAP, IBR, or another eligible plan by July 1, 2028. RAP is not available to new borrowers as a substitute for IBR if your loans were made on or after July 1, 2026 — in that case, RAP or Tiered Standard will be your options.