The Repayment Assistance
Plan (RAP).
Your payment, simplified.
A new IDR plan launches July 2026. Your payment will be based on your income and dependents, not how much you owe.
Estimate your payment in 30 seconds with the calculator below, then keep scrolling to understand whether RAP is the right plan for you.
Book a $299 Strategy Session →Most people leave knowing exactly what to do next.
Last Updated: April 23, 2026
RAP Student Loan Calculator
Want your number right now? Enter your AGI and dependents. Keep scrolling to understand what the number means and whether RAP is the right plan for you.
Why Student Loan Repayment Feels Overwhelming
You're looking at $300,000 in student loans. Your income is $65,000. The default repayment plan wants $2,776 per month.
That's more than your rent, your car payment, and your groceries combined.
You know there are other repayment options out there. Income-Driven Repayment plans that base your payment on what you earn, not what you owe. But there are multiple plans, each with different rules, different formulas, and different tradeoffs. It's confusing, and the wrong choice could cost you tens of thousands of dollars.
Starting July 2026, there's a new option joining the mix. It's called RAP. And for many borrowers, it's going to be the only Income-Driven Repayment plan available.
Let's break it down.
By the end of this guide, you'll understand:
Key Student Loan Terms to Know
Before we get into RAP, here are the terms you'll see throughout this guide. If you already know these, skip ahead.
📋 IDR (Income-Driven Repayment)
A category of federal repayment plans that set your monthly payment based on your income instead of your loan balance. RAP, IBR, and PAYE are all IDR plans.
📋 IBR (Income-Based Repayment)
An older IDR plan. Payments are 10-15% of discretionary income. Has a payment cap. Being phased out for new borrowers after July 2026.
📋 PAYE (Pay As You Earn)
Another older IDR plan. Payments are 10% of discretionary income. Also has a payment cap. Being phased out by July 2028.
📋 PSLF (Public Service Loan Forgiveness)
A federal program that forgives your remaining loan balance after 10 years of qualifying payments if you work for a nonprofit or government employer. The forgiveness is tax-free.
📋 AGI (Adjusted Gross Income)
Your total income minus certain deductions (retirement contributions, HSA, etc.). Found on Line 11 of your tax return. This is what RAP uses to calculate your payment.
So What Is RAP?
The Repayment Assistance Plan is a new IDR plan created as part of recent federal legislation. It's expected to become available July 1, 2026.
The problem it solves is simple: the default repayment plan assumes you can afford a payment based on your total loan balance. For many borrowers, especially those early in their careers, that payment is unrealistic. RAP calculates your payment based on what you actually earn instead.
Your monthly payment is based on just two things:
📊 Your Income (AGI)
Higher income = higher payment. Lower income = lower payment. RAP uses a tiered bracket system, similar to how tax brackets work.
👨👩👧👦 Your Dependents
Each dependent you claim on your federal tax return reduces your monthly payment by $50.
Notice what's not on that list: your loan balance. Whether you owe $50,000 or $500,000, the monthly payment is the same.
RAP typically uses your AGI from your most recent federal tax return (Line 11 of IRS Form 1040). If you haven't filed yet, or your income recently dropped, you may be able to use a recent paystub instead. This is called Alternative Documentation of Income.
RAP uses dependents you claim on your federal tax return, as defined under IRS Section 152. You do not count yourself. You do not automatically count your spouse. Only qualifying dependents reduce your payment. If you file Married Filing Separately, only dependents on your return are included.
Who Can Use RAP?
Everyone. Both new and old borrowers are eligible for RAP. There is no income ceiling, no partial financial hardship requirement, and no restriction based on when you borrowed.
The tricky part isn't RAP eligibility. It's whether you have access to other repayment plans like IBR and PAYE. That depends on whether you're a new borrower or an old borrower.
🆕 New Borrower
You take out a federal loan or complete a consolidation on or after July 1, 2026.
Your repayment options: RAP or Standard. That's it. No IBR. No PAYE.
📋 Old Borrower
All your federal loans were taken out before July 1, 2026, and you don't take out new loans or consolidate after that date.
You keep access to IBR, PAYE (until 2028 phase-out), RAP, Standard, Graduated, and Extended.
You can stay on it as long as you continue to meet the requirements, even after July 2026. If you're not on IBR today, you may still enroll later as long as you remain an old borrower and qualify.
Even borrowers currently using PAYE will eventually need to move to IBR or RAP. PAYE and ICR are expected to be phased out by July 2028.
A consolidation completed after July 1, 2026 permanently changes your borrower status. Even if all your original loans were taken out before that date, consolidating after it makes you a new borrower with access to only RAP or Standard. This decision cannot be reversed.
RAP at a Glance
Now that you know what RAP is and who can use it, here's how it stacks up. Each of these features has important tradeoffs. We'll unpack them one at a time.
There's No Payment Cap
This is the big tradeoff. Unlike IBR and PAYE, RAP has no ceiling on how high your payment can go.
If you're in training or early in your career, this probably won't affect you right now. The formula keeps payments low when income is modest. But as your salary grows, so does your RAP payment, with no limit.
On IBR or PAYE, your payment is capped at what you'd owe on the 10-Year Standard Plan. Even if your income hits $600,000, the payment stays at the cap. RAP has no such protection.
Assume $250,000 in loans at 6% interest. Under the 10-Year Standard Plan, the monthly payment is about $2,776. Under IBR or PAYE, that's the maximum you'd ever pay, no matter how much you earn.
Now imagine your income reaches $600,000. Here's what happens:
For higher earners, the lack of a cap can make RAP significantly more expensive over time. This is one of the most important factors when choosing between plans.
RAP + PSLF = Tax-Free Forgiveness
If you work for a nonprofit hospital or another qualifying 501(c)(3) employer, RAP payments count toward Public Service Loan Forgiveness.
🎯 The PSLF Goal
Make 120 qualifying payments (10 years). Remaining balance forgiven. Tax-free.
Without PSLF, RAP offers forgiveness after 30 years, but that forgiveness may be taxable. For most borrowers pursuing PSLF, the strategy is to pay as little as possible for 10 years and let the rest disappear.
RAP payments can continue for up to 30 years (360 qualifying monthly payments). After 30 years, any remaining balance is forgiven. That forgiveness may be taxable depending on the rules in effect at the time. That means if $200,000 is forgiven, the IRS could treat it as income and send you a tax bill.
PSLF changes everything. Forgiveness after 10 years is tax-free. For borrowers at qualifying employers, maximizing tax-free forgiveness after 10 years is almost always better than completing the full 30-year timeline.
The Married Filing Separately Strategy
For married borrowers, this is one of the most powerful planning strategies available. And one of the most misunderstood.
If you file taxes as Married Filing Separately (MFS), your spouse's income is generally excluded from the RAP payment calculation. That can make a massive difference.
👨⚕️ Dr. Patel, married edition
He earns $65,000. His spouse earns $295,000. They live in North Carolina (non-community property state).
File jointly? RAP payment based on $360,000 combined. About ~$3,000/month.
File separately? RAP payment based on $65,000 only. About ~$325/month.
The tradeoff? Filing separately can increase your tax bill. The right answer depends on how student loan savings and tax costs balance out in your specific situation.
When you file separately, RAP only counts the dependents you personally claim on your return. Dependents claimed by your spouse are not included.
Your Balance Won't Balloon
On some repayment plans, if your monthly payment doesn't cover all the interest that accrues, the unpaid interest gets added to your balance. That means your $300,000 in loans could quietly grow to $400,000 while you're making payments. That's called negative amortization.
RAP prevents this. Unpaid interest is not added to your balance. It stays flat.
RAP may also apply an additional principal reduction of up to $50/month if your payment doesn't reduce your principal by at least $50. Your balance can actually shrink, even with small payments.
The amount applied is the lesser of $50 or the amount you paid, after interest. Your principal can still decline slowly, even with very small payments.
How RAP Payments Are Calculated
Now that you understand what RAP is, who can use it, and what makes it different, here's the formula. Four steps.
1️⃣ Find your AGI bracket
Each income range has a corresponding percentage (1% to 10% of AGI), similar to tax brackets.
2️⃣ Multiply AGI × bracket %
This gives you your annual payment amount.
3️⃣ Divide by 12
Convert annual to monthly.
4️⃣ Subtract $50 per dependent
Minimum payment is always at least $10/month.
A Real-World RAP Example
You've learned what RAP is, who qualifies, and how the formula works. Now let's put it all together. Whether you're earning $65K or $300K, you'll see how the math plays out at every stage.
Loan balance: $250,000 · Interest rate: 6.0%
Income: $65,000 (just starting his career) · Dependents: 1
Under the Standard Repayment Plan, his monthly payment would be about $2,776. On a $65,000 salary, that's not realistic. So he looks at RAP.
1️⃣ Find the bracket
$65,000 → $60,001-$70,000 range → 6% of AGI
2️⃣ Calculate annual payment
$65,000 × 6% = $3,900/year
3️⃣ Convert to monthly
$3,900 ÷ 12 = $325/month
4️⃣ Subtract dependents
$325 - $50 (1 dependent) = $275/month
That's a savings of more than $2,500/month compared to the Standard Repayment Plan.
So, Should I Use RAP?
There's no universal answer. The right plan depends on your income, your employer, your loan balance, whether you're married, and what your income will look like in 5-10 years. But here's a starting framework.
✅ RAP might make sense if...
You're a new borrower after July 2026 (it may be your only IDR option).
You're pursuing PSLF and want an IDR plan that counts toward forgiveness.
You're early in your career with lower income and want manageable payments now.
You're not sure about PSLF, or there's a chance you won't qualify. RAP may not always offer the lowest monthly payment ($10 minimum vs. $0 on some other plans, for example), but your balance won't grow. That matters a lot if you might end up paying it back instead of having it forgiven, especially if your training is long.
⚠️ Think carefully if...
You're an old borrower with access to IBR or PAYE (those plans have payment caps RAP doesn't).
You expect your income to grow significantly and want a ceiling on your payments.
You're married and haven't explored how filing status affects the math.
🚨 Be cautious if...
You're considering consolidating after July 1, 2026 without understanding how it changes your borrower status.
You're already on PAYE or IBR and thinking about switching without comparing the long-term cost. Use the IDR Calculator to compare side by side →
Practical Questions
The stuff you actually need to know to take action.
The Department of Education has said RAP will be available July 1, 2026, but there is no official timeline yet on when you'll actually be able to apply. I'll keep this page updated as more details are released.
The SAVE plan has been blocked by court rulings. RAP is the replacement plan created by Congress. If you were on SAVE or waiting for it, RAP is likely the next option to evaluate. Most borrowers who were enrolled in SAVE will likely need to transition to RAP (or IBR, if eligible) once RAP becomes available in July 2026. I'll keep this page updated as guidance is released.
You'll apply at studentaid.gov/idr, similar to how you'd apply for any IDR plan. The process typically involves submitting income documentation (tax return or paystub) and selecting RAP as your repayment plan. Specific enrollment steps will be available closer to the July 2026 launch.
Yes. RAP is expected to be PSLF eligible. Qualifying payments count toward the 120 needed for tax-free forgiveness.
Like other IDR plans, you'll need to recertify your income annually. Your loan servicer will notify you when it's time. If your income has changed (up or down), your monthly payment will be recalculated based on your updated AGI and dependents. If you don't recertify on time, your payment could temporarily increase to the Standard Repayment amount.
What if my income drops? If your income decreases significantly (job change, reduced hours, parental leave), you don't have to wait for annual recertification. You can submit updated income documentation (like a recent paystub) to your servicer and request a payment recalculation. Your payment should decrease to reflect your new, lower income.
It depends on your situation. A consolidation completed after July 1, 2026 makes you a new borrower, limiting you to RAP or Standard. If you want to preserve access to IBR or PAYE, you may need to consolidate before that date.
No. RAP prevents unpaid interest from being added to your balance. RAP may also apply an additional principal reduction of up to $50/month.
Want Help Getting This Right?
RAP launches in July 2026, and the decisions you make between now and then matter. Consolidation timing, plan selection, filing status. One wrong move can cost you tens of thousands of dollars, and most of these decisions can't be undone.
Most people can get pretty far on their own using this guide. But if you'd rather talk things through with someone who does this every day, I'm here.
🔍 One-time strategy session ($299)
We'll review your loans, choose the right repayment plan, check your PSLF path, and give you a clear game plan with exact next steps. One meeting. Full clarity.
🤝 Ongoing concierge support ($99/mo)
You're pursuing PSLF and don't want to deal with annual forms, servicer changes, or payment recertification alone. One yearly meeting, email access year-round, and a simple action plan so you always know what to do next.
Pick the path that fits you today.
You can always adjust later if your situation changes.