The Repayment Assistance Plan (RAP) is a new income-driven repayment (IDR) option for federal student loan borrowers. RAP becomes available on July 1, 2026, and will be the default repayment plan for new Direct Loan borrowers alongside the new Tiered Standard plan.
Who Can Enroll in RAP?
RAP is available to most Direct Loan borrowers regardless of when your loan was made. However, the following borrowers are not eligible:
- Parent PLUS borrowers
- Borrowers with ineligible loan types such as FFEL and Federal Perkin Loans
- Direct Consolidation loans that include Parent Plus Loans
RAP is also available for Direct Consolidation Loans made on or after July 1, 2026.
How Your Monthly Payment Is Calculated
Your payment under RAP is based on your Adjusted Gross Income (AGI) using a sliding scale of 1% to 10% of your AGI:
| AGI | Annual Payment |
|---|---|
| $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 |
Your full AGI is used in the calculation, there is no income exemption.
Dependents
For each dependent, subtract $50 from your monthly payment.
Minimum 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
If you make your payments on time but your payment does not fully cover the interest accruing on your loan, the Department of Education will waive the unpaid accrued interest. This applies to all loan types and protects you from your balance growing over time.
Principal Matching
If your required RAP payment does not reduce your principal balance by at least $50 for the month, the Department provides an additional subsidy so that at least $50 goes towards the principal reduction.
Married Borrowers Filing Jointly
If you and your spouse file taxes jointly, a single payment is calculated based on your combined income and then split between borrowers based on each person's share of the combined loan balance.
Switching Repayment Plans
After entering repayment, you can switch between RAP, IBR (if eligible for this plan), and the Tiered Standard repayment plan at any time.
Loan Forgiveness
After making 360 qualifying on-time payments (30 years), your remaining loan balance may be forgiven.
Public Service Loan Forgiveness (PSLF)
RAP qualifies for Public Service Loan Forgiveness (PSLF). Keep in mind:
- Only on-time payments made while enrolled in RAP count toward PSLF.
- Months in deferment or forbearance while on RAP do not count toward PSLF.
- Months in RAP are not eligible for reconsideration-type credit relief.
When Does RAP Take Effect?
RAP is available starting July 1, 2026. It will be the default plan for new Direct Loan borrowers who do not select a repayment plan, along with the Tiered Standard plan.