Direct student-borrower debt
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans for graduate or professional students
- Direct Consolidation Loans that do not include Parent PLUS history
New Federal IDR Plan | Effective July 1, 2026
Repayment Assistance Plan (RAP): 2026 Payment & Eligibility Guide
See who can use RAP, how the AGI-based payment works, why the $10 minimum matters, and what the interest and principal benefits change.
Federal loans only · $10 minimum monthly payment · Annual income update · Borrower keeps FSA credentials
RAP PAYMENT ENGINE2026
AGI1–10%base percentage schedule
÷ 12− $50≥ $10
monthly baseper claimed dependentmonthly floor
INTEREST SUBSIDYPRINCIPAL BENEFITPSLF-COMPATIBLE
$10 Minimum Monthly Payment1–10% AGI Percentage Schedule$50 Reduction Per Claimed Dependent30 YRS General Qualifying Horizon
THE NEW 2026 INCOME-DRIVEN FRAMEWORK
The Repayment Assistance Plan is the new federal income-driven repayment option that became available July 1, 2026. RAP calculates payments from adjusted gross income using a rising 1%–10% schedule, then reduces the monthly amount by $50 for each dependent claimed on the federal tax return, subject to a $10 minimum. Eligible Direct Loan borrowers can also receive interest and principal benefits when full, on-time payments qualify. But RAP is not available to Parent PLUS histories, and older borrowers may still have alternatives worth comparing.
01 / THE SHORT ANSWER
What Is the Repayment Assistance Plan?
RAP is an income-driven federal repayment plan for eligible Direct Loans that bases the required payment on AGI, claimed dependents, and current federal rules.RAP became available July 1, 2026 as part of the federal repayment reset. It is materially different from SAVE, IBR, PAYE, and ICR. The monthly formula starts with a percentage of adjusted gross income rather than a percentage of discretionary income after a poverty-guideline deduction.
The plan also includes a monthly minimum, a dependent adjustment, a 30-year general repayment horizon, and special treatment for unpaid interest and principal progress when the borrower makes the required payment in full and on time.
For borrowers with all loans disbursed on or after July 1, 2026, Federal Student Aid says RAP is the only available income-driven repayment plan for eligible loans. Borrowers with older loans can have additional choices, which is why the date on each loan matters before comparing payments.
Review the current Federal Student Aid IDR eligibility FAQ ↗02 / ELIGIBILITY FIRST
Who Is Eligible for RAP in 2026?
Eligible Direct Loan borrowers can use RAP, but Parent PLUS debt and consolidations with Parent PLUS history are excluded.VS
Parent PLUS history
- Direct PLUS Loans for parents
- Direct Consolidation Loans that repaid Parent PLUS
- Direct Consolidation Loans that repaid another consolidation containing Parent PLUS
JULY 1, 2026Compare All Plans
One date can change the IDR menu.
If all loans were disbursed on or after July 1, 2026, RAP is the only IDR plan available for eligible loans. If all loans are older, additional IDR choices may remain. Mixed-date portfolios can require separate treatment.
03 / THE FORMULA
How Is the RAP Monthly Payment Calculated?
RAP applies an income-band percentage to AGI, divides the annual base by 12, subtracts $50 per claimed dependent, and then applies a $10 monthly minimum.THE BASIC RAP FORMULA
AGI × band %÷ 12− ($50 × dependents)→minimum $10
The official federal calculation can also account for spouse income and spouse federal student-loan debt when applicable. Use the Federal Student Aid Repayment Calculator for the actual scenario rather than relying on a hand calculation alone.
Adjusted Gross IncomeAnnual BaseBefore Dependents
$10,000 or less$120 annual base$10 monthly minimum still applies
$10,001–$20,0001% of AGIThen divide by 12
$20,001–$30,0002% of AGIThen divide by 12
$30,001–$40,0003% of AGIThen divide by 12
$40,001–$50,0004% of AGIThen divide by 12
$50,001–$60,0005% of AGIThen divide by 12
$60,001–$70,0006% of AGIThen divide by 12
$70,001–$80,0007% of AGIThen divide by 12
$80,001–$90,0008% of AGIThen divide by 12
$90,001–$100,0009% of AGIThen divide by 12
More than $100,00010% of AGIThen divide by 12
DEPENDENT ADJUSTMENT− $50for each dependent claimed on the federal tax return
The dependent reduction happens after the base monthly amount is determined, but RAP does not go below $10 per month. This makes claimed dependents a direct part of the payment formula rather than merely an input to a poverty-guideline allowance.
04 / WHAT HAPPENS AFTER YOU PAY
How Do RAP Interest and Principal Benefits Work?
Full, on-time RAP payments can prevent unpaid monthly interest from increasing the balance and can provide additional principal progress when too little of the payment reaches principal.Unpaid monthly interest can be covered.
If the required RAP payment is less than the interest that accrues for the month, current federal-servicer guidance says the unpaid interest remaining after the full, on-time payment is subsidized rather than charged to the borrower for that month.
Why it matters:This is designed to prevent negative amortization caused solely by a required RAP payment that is below monthly interest.Qualifying payments can still move principal.
If a full, on-time payment reduces principal by less than the amount required under the matching rule, the Department of Education can provide an additional principal reduction. The practical benefit is capped by the current $50 matching structure and the amount the borrower paid.
Why it matters:RAP is designed so a qualifying monthly payment can produce principal progress instead of leaving the balance completely static.PAID-AHEAD WARNING
Paying early is not always the same as making a qualifying monthly RAP payment.
Federal servicers state that borrowers may pay ahead, but RAP interest and principal benefits generally apply only for months in which a full, on-time payment is actually received. If a large payment satisfies future due dates, those future months may not receive the same subsidy or matching benefit.
05 / FORGIVENESS STRATEGY
Can RAP Be Used With Public Service Loan Forgiveness?
Yes. RAP may be used with PSLF for eligible Direct Loans when the borrower also satisfies the program’s employment, payment, form, and other requirements.RAP’s general repayment horizon is 30 years, but that does not mean every RAP borrower must wait 30 years for forgiveness. A borrower who qualifies for PSLF can potentially receive forgiveness after the required PSLF payment count instead.
The strategy question is therefore not simply, “What is my RAP payment?” It is also whether the borrower has qualifying public-service employment, whether the loans are PSLF-eligible, whether the employer history is documented, and whether RAP produces a sensible payment trajectory during the PSLF period.
06 / DO NOT CHOOSE FROM ONE NUMBER
What Should You Compare Before Choosing RAP?
The monthly payment matters, but RAP should be evaluated as a complete repayment strategy.Loan Eligibility
RAP is for eligible Direct Loans. Parent PLUS loans and Direct Consolidation Loans with Parent PLUS history are excluded, even when the Parent PLUS debt moved through another consolidation.
Adjusted Gross Income
The RAP base payment uses an AGI percentage schedule that rises with income. The percentage ranges from 1% to 10%, with a $120 annual base at the lowest income band.
Claimed Dependents
After the base monthly amount is calculated, the payment is reduced by $50 for each dependent claimed on the federal tax return, subject to the $10 monthly minimum.
Marriage and Tax Filing
Joint filers generally use combined income, with an adjustment when the spouse also has federal student loans. Separate filers generally use the borrower’s income and claimed dependents.
Interest and Principal Benefits
A full, on-time RAP payment can trigger an interest subsidy when the payment is below monthly interest and a principal benefit when too little of the payment reaches principal.
Forgiveness Goal
RAP has a 30-year general qualifying-payment horizon, but eligible borrowers pursuing PSLF can potentially reach forgiveness sooner if all PSLF requirements are satisfied.
RAP IS NOT SAVE 2.0
Do not carry an old SAVE assumption into a RAP decision.
SAVE ended in 2026. RAP uses a different statutory formula, a $10 minimum, a 30-year general horizon, direct dependent reductions, and its own interest/principal benefits. Former SAVE borrowers should compare the plans currently available to their actual loans rather than treating RAP as an automatic replacement.
07 / FIT CHECK
When Does RAP Deserve a Serious Look?
RAP can be compelling when the borrower is eligible, needs income-driven flexibility, and the payment and long-term rules align with the actual goal.- You have eligible Direct Loans and want an income-driven payment tied directly to AGI and claimed dependents.
- You received a Direct Loan on or after July 1, 2026 and need to understand the IDR option now available to that portfolio.
- Your calculated payment may be below monthly interest and the RAP interest subsidy could matter to long-term balance behavior.
- You are pursuing PSLF and want RAP evaluated as part of the qualifying repayment strategy.
- Your income changes meaningfully from year to year and a fixed-payment plan may not fit as well.
- You have dependents claimed on your federal tax return and want to understand the $50-per-dependent payment reduction.
- You have Parent PLUS debt or a Direct Consolidation Loan that repaid Parent PLUS debt; RAP is not available for those loans.
- Your loans are all older than July 1, 2026 and IBR or another legacy path may produce a stronger overall outcome.
- You want the shortest possible payoff and can comfortably afford a faster fixed-payment plan.
- You are comparing RAP only because the monthly payment is lower and have not looked at the 30-year horizon or total projected cost.
- You plan to pay months far in advance without understanding how paid-ahead status can affect RAP interest and principal benefits.
- Your tax-filing or household situation is changing and the income/dependent assumptions used today may not hold next year.
08 / SIX-STEP DECISION PROCESS
How Should You Evaluate RAP Before Switching?
Start with loan eligibility, then move through the payment, benefits, alternatives, and the borrower’s long-term objective.Verify Every Federal Loan
Check loan type, first-disbursement date, consolidation history, current balance, and whether any Parent PLUS debt sits behind a consolidation. RAP eligibility cannot be determined from income alone.
Check Which IDR Plans Are Actually Available
If all loans were disbursed on or after July 1, 2026, RAP is the only IDR plan available for eligible loans. Older portfolios may still have other choices, while mixed-date portfolios can require a loan-by-loan review.
Estimate the RAP Payment
Use current AGI, tax-filing information, claimed dependents, and spouse federal-loan information where applicable. Then compare the result with the official Federal Student Aid Repayment Calculator.
Compare RAP Against the Alternative
Do not stop at the monthly payment. Compare the repayment horizon, total projected payments, annual recertification, interest treatment, principal benefit, PSLF strategy, and what happens if income rises.
Review the Payment-Handling Rules
RAP benefits are tied to full, on-time monthly payments. Paying ahead can satisfy future due dates but may reduce the months in which the interest subsidy and principal-matching benefit are available.
Choose the Next Step
Use the official federal process if the answer is clear. If RAP must be compared against IBR, PSLF, consolidation, marriage, or a changing income situation, use individualized analysis before submitting a change.
09 / FREE FIRST, PAID WHEN THE TRADEOFFS ARE HARD
Do You Need to Pay Someone to Choose RAP?
No. The federal tools are free. Paid FedRepay guidance is for borrowers who want individualized analysis, written decision support, or implementation help.Federal Student Aid
Use the official Repayment Calculator and StudentAid.gov account information to check eligibility and estimate RAP.
- Official eligibility screening
- Estimated monthly payment
- Plan comparisons
- Free federal application
Strategy Session
For borrowers who want RAP compared against the other plans that may apply to their actual loans and goals.
- Pre-meeting review
- Approximately 60-minute meeting
- Relevant scenarios
- Written Strategy Summary
Complete FedRepay Plan
For borrowers who want the analysis plus a written Roadmap™, application guidance, document review, and follow-up support.
- Personalized Roadmap™
- Application guidance
- Document review within scope
- 60 days of support
10 / FREQUENTLY ASKED QUESTIONS
Repayment Assistance Plan FAQs
These answers reflect the current 2026 federal framework and should be rechecked if federal guidance changes.What is the Repayment Assistance Plan (RAP)?
The Repayment Assistance Plan is a federal income-driven repayment plan available beginning July 1, 2026 for eligible Direct Loans. The monthly payment is based on an AGI percentage schedule, reduced by $50 for each claimed dependent, with a $10 monthly minimum.
Who qualifies for RAP in 2026?
Eligible Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Grad PLUS Loans, and qualifying Direct Consolidation Loans can use RAP. Parent PLUS loans and Direct Consolidation Loans with Parent PLUS history are excluded.
Is RAP the only income-driven plan for new loans?
If all of a borrower’s loans were disbursed on or after July 1, 2026, Federal Student Aid states that RAP is the only IDR plan available to those eligible loans. Older or mixed-date portfolios can have a different set of choices.
How is the RAP payment calculated?
RAP uses a percentage of adjusted gross income that rises from 1% to 10% across income bands, divided by 12. Borrowers with AGI of $10,000 or less use a $120 annual base amount. The monthly amount is then reduced by $50 for each dependent claimed on the federal tax return, but the payment cannot be less than $10.
Can my RAP payment be $0?
No. Current federal-servicer guidance states that RAP has a minimum monthly payment of $10.
How do dependents affect RAP?
The calculated monthly RAP amount is reduced by $50 for each dependent the borrower claims on the federal tax return, subject to the $10 monthly minimum. This is different from older IDR formulas that rely on a poverty-guideline family-size calculation.
How does marriage affect RAP?
For joint federal tax filers, the RAP calculation generally uses combined income. If the spouse also has federal student loans, the payment can be adjusted for the spouse’s federal student debt. Separate filers generally use the borrower’s income and claimed dependents.
Does RAP stop unpaid interest from growing my balance?
When a full, on-time RAP payment is less than the interest that accrues for the month, current federal-servicer guidance says the remaining unpaid interest is subsidized. This is designed to prevent negative amortization for that month.
What is the RAP principal matching benefit?
If a full, on-time RAP payment reduces principal by less than the applicable amount, the Department of Education can provide a principal reduction so the borrower receives additional principal progress, capped by the current matching rule. The practical maximum benefit is tied to $50 and the amount paid.
Can paying ahead affect RAP benefits?
Yes. Federal servicers state that RAP borrowers can pay ahead, but the interest subsidy and principal-matching benefits generally apply only for the month in which a full, on-time payment is actually made. Satisfying future due dates in advance can therefore affect those future benefits.
How long is repayment under RAP?
RAP has a 30-year, or 360-month, general qualifying-payment period before a remaining eligible balance may be forgiven if the borrower has not already repaid the debt. PSLF can provide a shorter path for borrowers who satisfy all PSLF requirements.
Does RAP qualify for PSLF?
RAP may be used with Public Service Loan Forgiveness for eligible Direct Loans when the borrower also satisfies the employment, payment, form, and other PSLF requirements.
Is RAP the same thing as SAVE?
No. SAVE ended in 2026. RAP is a different statutory repayment plan with a different payment formula, a $10 minimum, a 30-year general term, dependent reductions, and its own interest and principal benefits.
Is RAP better than IBR?
Neither plan is universally better. RAP can produce a different payment and interest treatment, while IBR has different eligibility rules, a discretionary-income formula, payment caps, and a 20- or 25-year forgiveness horizon. Borrowers with older eligible loans should compare both using the same assumptions.
How do I apply for RAP?
Use the official Federal Student Aid repayment process at StudentAid.gov. The federal Repayment Calculator is the best starting point for checking current eligibility and estimating the payment before submitting a plan request.
THE NEXT QUESTION IS PERSONAL
Does RAP actually fit your loans, income, and goal?
Start with the official federal calculator. If the answer is still unclear after you see the numbers, FedRepay can compare the tradeoffs and turn them into a written decision.