Repayment Assistance Plan (RAP): How the Payment Works
Guides · Updated October 17, 2026 · 4 min read
Educational information only. Not financial, tax, or legal advice. We are not the U.S. Department of Education or a loan servicer. Help with federal loans is free at StudentAid.gov. Never pay a company to apply for a repayment plan. Last checked against the listed official sources: October 17, 2026. Examples use made-up numbers.
Short answer: Under RAP, your monthly payment is a percentage of your adjusted gross income (AGI), divided by 12, reduced by $50 for each dependent you claim, with a $10 minimum per month. The repayment period is 30 years. RAP has been available since July 1, 2026.
The formula
- Find your annual base payment from your AGI (table below, from 34 CFR 685.209).
- Divide by 12.
- Subtract $50 for each dependent (an individual who qualifies as a dependent under IRC section 152 and is claimed on your federal return).
- The payment cannot be below $10 a month (per Federal Student Aid and the Education Department fact sheet).
| Your AGI | Annual base payment |
|---|---|
| $10,000 or less | $120 |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% of AGI |
| $30,001 to $40,000 | 3% of AGI |
| $40,001 to $50,000 | 4% of AGI |
| $50,001 to $60,000 | 5% of AGI |
| $60,001 to $70,000 | 6% of AGI |
| $70,001 to $80,000 | 7% of AGI |
| $80,001 to $90,000 | 8% of AGI |
| $90,001 to $100,000 | 9% of AGI |
| More than $100,000 | 10% of AGI |
Made-up examples
| AGI | Dependents | Base payment / yr | Monthly before the minimum | Monthly payment |
|---|---|---|---|---|
| $8,000 | 0 | $120 | $10.00 | $10.00 |
| $35,000 | 0 | 3% = $1,050 | $87.50 | $87.50 |
| $48,000 | 1 | 4% = $1,920 | $160.00 − $50 | $110.00 |
| $75,000 | 2 | 7% = $5,250 | $437.50 − $100 | $337.50 |
| $25,000 | 1 | 2% = $500 | $41.67 − $50 | $10.00 (minimum) |
These are our own calculations of the published formula, for illustration, not your payment. Run the same steps in the payment comparator. The official Loan Simulator uses your real loan and income data.
Who can use RAP?
- It is the only income-driven plan for loans disbursed on or after July 1, 2026, and Direct Loans disbursed at any time are eligible.
- FFEL loans and Perkins loans are eligible only after consolidation into a Direct Consolidation Loan.
- Parent PLUS loans are not eligible, including in a consolidation loan that contains them.
Married borrowers
The Education Department fact sheet says RAP prorates payments for married borrowers to avoid double-counting a spouse's income. The exact treatment depends on your filing status and loans, so we do not show a formula; see 34 CFR 685.209 and the Loan Simulator. Dependents are counted as claimed on your return; if you file married filing separately, only dependents claimed on your return count (per the eCFR text).
Other facts
- Payments must be made on time for the interest waiver and principal match; see RAP principal match explained.
- On-time RAP payments are described by the Education Department as counting toward PSLF.
- You must recertify your income and family size once a year. You can consent to IRS data sharing to simplify this.
- Federal Student Aid says discharge dates are based on the plan's required number of payments. For RAP the repayment period is 30 years.
- Any remaining balance discharged on or after January 1, 2026 is taxed as federal income per Federal Student Aid's page. Consider speaking with a tax professional.
FAQ
Is it AGI or discretionary income?
RAP uses adjusted gross income. IBR and PAYE use discretionary income above 150% of the poverty guideline.
Does my loan balance change the payment?
Not the RAP formula, which uses income and dependents. The balance does change a fixed plan such as Tiered Standard.
What we could not verify
These points were not settled in the sources we read. Treat them as open.
- How married-filing-jointly proration is calculated in detail.
- Whether poverty-guideline or AGI definitions change after October 17, 2026.
- Your personal payment. Use the official Loan Simulator for that.
Sources
- eCFR, 34 CFR 685.209, Income-driven repayment plans. RAP base payment schedule, dependents, and matching principal. Read October 17, 2026.
- U.S. Department of Education, RISE final rule fact sheet. Fact Sheet: Trump Administration Implements Student Loan Provisions of the Working Families Tax Cuts Act. Read October 17, 2026.
- Federal Student Aid, SAVE Plan Borrowers: FAQs About Choosing a Different Repayment Plan (published October 2026). Read October 17, 2026.
- Federal Student Aid, Top FAQs About Income-Driven Repayment Plans. Read October 17, 2026.