RAP student loans: the new plan explained
Published
Work out your own numbers with the rap student loans calculator.
The Repayment Assistance Plan (RAP) is a new income-driven repayment plan for federal Direct Loans. It opens on July 1, 2026. It replaces the older income-driven plans for new borrowers and has some features that the old plans did not have.
How the payment is set
Your payment is a percentage of your adjusted gross income (AGI):
| AGI | Yearly payment |
|---|---|
| $10,000 or less | $120 |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% of AGI |
| $30,001 to $40,000 | 3% of AGI |
| $40,001 to $50,000 | 4% of AGI |
| $50,001 to $60,000 | 5% of AGI |
| $60,001 to $70,000 | 6% of AGI |
| $70,001 to $80,000 | 7% of AGI |
| $80,001 to $90,000 | 8% of AGI |
| $90,001 to $100,000 | 9% of AGI |
| Over $100,000 | 10% of AGI |
The yearly amount is divided by 12. Then $50 a month comes off for each dependent. The payment is never less than $10 a month.
Interest waiver
If your monthly payment is less than the interest charged that month, the unpaid interest is waived. As long as you pay on time, your balance does not grow from interest.
Principal match
If your payment reduces your principal by less than $50 in a month, the Department of Education adds the difference. The match is up to $50, or up to the amount of your payment if that is lower. This makes sure the balance goes down each month you pay.
Forgiveness
Any balance left after 360 qualifying monthly payments, which is 30 years, is forgiven. Payments under RAP also count toward Public Service Loan Forgiveness.
Who can use RAP
- Direct Loan borrowers, including Direct Consolidation Loans.
- Not Parent PLUS loans, or consolidation loans that repaid a Parent PLUS loan.
- FFEL and Perkins loans must first be consolidated into a Direct Loan.
New loans made on or after July 1, 2026 can be repaid only on RAP or a standard plan. Borrowers on the older income-driven plans must move to another plan by July 1, 2028.
Example
Jordan has AGI of $55,000 and one child. The rate is 5%, so the yearly base is $2,750, or about $229.17 a month. Less $50 for the child, the payment is $179.17. On $35,000 at 6.5%, interest is about $189.58 a month. About $10.42 of interest is waived, and the government adds a $50 principal match.
Common questions
When does the RAP student loan plan start?
RAP opens on July 1, 2026.
What is the minimum RAP payment?
The minimum is $10 a month. Borrowers with AGI of $10,000 or less have a yearly base of $120.
Does my RAP balance grow if my payment is low?
No. If your payment does not cover the month’s interest, the unpaid interest is waived, as long as you pay on time.
Can Parent PLUS loans use RAP?
No. Parent PLUS loans and consolidation loans that repaid a Parent PLUS loan cannot use RAP.
How long until RAP forgives my loan?
After 360 qualifying monthly payments, which is 30 years.
Updated: November 1, 2026. Based on 20 U.S. Code § 1087e and Federal Student Aid information on repayment plans.