Student Loan RAP Calculator 2026

The Repayment Assistance Plan (RAP) is a new income-driven repayment plan created by P.L. 119-21 (the FY2025 budget reconciliation law), effective July 1, 2026. It is the only IDR plan available for new Direct Loans originated on or after July 1, 2026. Payments scale from 1% to 10% of your full Adjusted Gross Income (AGI) in 1-percentage-point steps per $10,000 of income. For AGI ≤ $10,000 the payment is a flat $10/month. Each dependent child reduces your monthly payment by $50 (minimum $10/month).

RAP applies 1–10% to your full AGI in steps of 1% per $10,000. IBR uses 10% (post-July 2014 borrowers) or 15% (pre-July 2014) of discretionary income — where discretionary income = AGI minus 150% of the federal poverty guideline for your household size. IBR's poverty-line deduction grows with household size, so IBR can be lower for larger families. RAP reduces the monthly payment by $50 per dependent child; IBR has no such reduction. IBR remains available for existing borrowers.

Your payment depends on your AGI and dependent children. Example: AGI $50,000 falls in the 5% tier ($40K–$60K band). Base monthly = 5% × $50,000 ÷ 12 = $208.33. With 2 dependent children: $208.33 − (2 × $50) = $108.33/month ($1,300/year). With no dependents: $208.33/month ($2,500/year). Use the calculator above to see your exact amount.

RAP takes effect July 1, 2026. It is mandatory for new Direct Loans made on or after July 1, 2026. Borrowers currently on SAVE, ICR, or PAYE must transition to RAP or a standard repayment plan by that date. IBR borrowers may remain on IBR. If you also take out new loans after July 1, 2026, all your Direct Loans (new and existing) must move to RAP.

RAP reduces your monthly payment by $50 for each dependent child you claim — not per year, per month. This is applied after calculating your base payment. For example, 3 dependent children reduce your monthly payment by $150 (3 × $50), saving $1,800/year. Your payment cannot go below $10/month regardless of how many dependents you claim. (Source: P.L. 119-21 / CRS Report IF13075)

Not always — it depends on your household size. IBR's poverty-line deduction is based on household size (borrower + dependents): in 2026 it is $15,960 for 1 person, plus $5,680 per additional household member. For a family of 4, IBR deducts 150% × $33,000 = $49,500 before applying its 10% rate, which can make IBR cheaper than RAP. Use the RAP vs IBR comparison in the calculator above to compare your specific situation.

RAP has two built-in financial protections: (1) Interest subsidy — any unpaid monthly interest above your RAP payment is NOT added to your loan balance, preventing negative amortization. (2) Minimum principal guarantee — the government subsidizes your payment to ensure at least $50/month of principal is reduced. After 360 qualifying payments (30 years), any remaining balance is forgiven — but is treated as taxable ordinary income. Exception: PSLF forgiveness (after 120 qualifying payments in public service) is completely tax-free. Critical: if you switch from RAP to another plan like IBR, your RAP payment count does NOT transfer to IBR's forgiveness clock — but prior IBR/ICR/PAYE payments DO count toward RAP's 30-year clock.

No — RAP has no monthly payment cap. IBR caps payments at the standard 10-year plan amount; RAP does not. For high-income borrowers with modest debt, RAP payments can exceed standard repayment. Example: AGI $150,000 → RAP = 10% × $150,000 ÷ 12 = $1,250/month. A $50,000 loan on standard 10-year at 7% = ~$581/month. Rule of thumb: if RAP exceeds your standard 10-year payment, standard repayment may save money for non-PSLF borrowers. RAP is advantageous for PSLF-track borrowers, low-to-moderate income, and families with multiple dependents.

Parent PLUS loans are NOT eligible for RAP — not directly and not via consolidation. Graduate PLUS loans (the student's own loans) ARE eligible. Parent PLUS borrowers who want IDR access must consolidate into a Direct Consolidation Loan by July 1, 2026, then enroll in Income-Contingent Repayment (ICR), and can then optionally switch to IBR. Missing the July 1, 2026 consolidation deadline means losing all IDR access permanently. Note: ICR itself expires June 30, 2028, leaving IBR as the only IDR option for consolidated Parent PLUS loans after that date.

Your Adjusted Gross Income is on Form 1040, line 11. It is your total income minus above-the-line deductions (such as student loan interest, HSA contributions, and traditional IRA contributions). Use last year's tax return for an estimate, or your most recent pay stubs and deductions if your income changed.

Yes. Qualifying RAP payments made while working full-time for a qualifying employer count toward Public Service Loan Forgiveness. After 120 qualifying payments, remaining balance is forgiven tax-free — typically much faster than RAP's 30-year forgiveness path.

SAVE has been blocked by federal court action and is being wound down under recent legislation. Borrowers on SAVE typically must choose a new plan (often RAP or IBR) by the July 1, 2026 transition window or risk being placed on standard repayment. Qualifying payment history earned under prior IDR plans generally transfers toward RAP's 30-year clock — confirm with your servicer.

Borrowers on PAYE and ICR must transition to RAP or standard repayment by July 1, 2026 for the new RAP regime. ICR remains briefly relevant as a Parent PLUS consolidation gateway until it expires June 30, 2028. Check StudentAid.gov for the latest enrollment deadlines.

RAP's $50/month reduction is tied to dependent children under the plan rules in P.L. 119-21 / CRS IF13075. Exact definitions follow Department of Education implementing guidance — generally children you claim as dependents. Confirm with your servicer how dependents are certified annually.

Existing borrowers may have options depending on loan age and plan eligibility, but switching from RAP to IBR can reset forgiveness progress on IBR's clock — RAP months may not transfer to IBR. Prior IBR/ICR/PAYE payments typically do count toward RAP's 30-year clock. Plan switches carefully if forgiveness is your goal.

Yes. Graduate PLUS loans borrowed by the student are eligible for RAP. Parent PLUS loans borrowed by a parent are not eligible, even after consolidation.

FFEL loans that are not Direct Loans generally must be consolidated into a Direct Consolidation Loan to access federal IDR plans, including RAP where eligible. Consolidation has tradeoffs (interest rate averaging, loss of some borrower benefits) — review before consolidating.

Like other IDR plans, RAP payments are typically recalculated annually based on updated income and family information you certify with your servicer. If your income changes significantly mid-year, you may be able to recertify early — ask your loan servicer.

No. RAP is a federal Direct Loan income-driven plan. Private student loans are not eligible. Use a standard payoff calculator for private loan amortization.

PSLF-track borrowers usually want the lowest qualifying IDR payment so more balance remains to be forgiven tax-free after 120 payments. Extra principal payments reduce what would have been forgiven. Compare RAP vs IBR with the calculator, then confirm employer eligibility with the PSLF Help Tool on StudentAid.gov.

AGI at or below $10,000 yields a flat $10/month RAP payment (before considering whether dependents would already keep you at the $10 floor). Even at $10/month, RAP's interest subsidy and principal guarantee rules still apply per statute — your balance should not negatively amortize from unpaid interest.

It implements the RAP rate steps and $50/child monthly reduction described in P.L. 119-21 and CRS Report IF13075, and compares to IBR using 2026 HHS poverty guidelines. Final Department of Education regulations, servicer rounding, and your certified household size can change exact amounts. Treat results as estimates and verify on StudentAid.gov.