RAP Student Loan Calculator: New Payment Plan from July 2026
Enter your adjusted gross income, dependents, loan balance and interest rate. The receipt shows your first RAP payment and how it is applied.
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How the RAP payment is set
Your rate depends on AGI. Above $10,000, the rate goes up by one point for each $10,000 band, to a maximum of 10% above $100,000. The yearly amount is divided by 12, and then $50 a month comes off for each dependent. The payment never goes below $10 a month.
| AGI | Rate |
|---|---|
| $10,000 or less | $120 a year |
| $10,001 to $20,000 | 1% |
| $20,001 to $30,000 | 2% |
| $50,001 to $60,000 | 5% |
| $90,001 to $100,000 | 9% |
| Over $100,000 | 10% |
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, so about $10.42 of interest is waived and the government adds a $50 principal match.
Sources
Common questions
What is the Repayment Assistance Plan?
RAP is a new income-driven repayment plan for federal Direct Loans, opening July 1, 2026. Payments are 1% to 10% of adjusted gross income, less $50 a month for each dependent.
What is the lowest RAP payment?
The minimum is $10 a month. Borrowers with AGI of $10,000 or less pay $120 a year.
What happens to unpaid interest on RAP?
If your payment does not cover the interest for the month, the unpaid interest is waived. Your balance does not grow from interest while you pay on time.
What is the principal match?
If your payment reduces your principal by less than $50, the Department of Education adds the difference, up to $50 or the amount of your payment if that is lower.
When is the rest of the loan forgiven?
After 360 qualifying monthly payments, which is 30 years. Payments on RAP also count toward Public Service Loan Forgiveness.
Which loans cannot use RAP?
Parent PLUS loans, and consolidation loans that repaid a Parent PLUS loan, are not eligible. FFEL and Perkins loans must first be consolidated into a Direct Loan.