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 (P.L. 119-21; CRS IF13075). (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. Sources: P.L. 119-21; CNBC (May 29, 2026); NerdWallet.

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. In this case, standard repayment is cheaper each month and the loan is paid off 20 years sooner. Rule of thumb: calculate your standard 10-year monthly payment — if RAP > standard, standard repayment saves money for non-PSLF borrowers. RAP is advantageous for: PSLF-track borrowers (any income), low-to-moderate income, and families with multiple dependents. Sources: NerdWallet; Yahoo Finance; CRS IF13075.

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 — leaving only standard repayment options. Note: ICR itself expires June 30, 2028, leaving IBR as the only IDR option for consolidated Parent PLUS loans after that date. Sources: NerdWallet; Yahoo Finance (IBR vs RAP); P.L. 119-21.