RAP Calculator 2026 — Repayment Assistance Plan Payment

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Calculate your monthly payment under the Repayment Assistance Plan that opened July 1, 2026. Sliding 1–10% of AGI, $50 per dependent, interest waiver and 30-year forgiveness.

By Konstantin Iakovlev · Updated August 2026 · Source: Federal Student Aid — Income-driven repayment plans

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RAP Monthly Payment

$229.17

Standard 10-Year Payment

$510.97

Forgiven at Year 30

$24,509.40

How RAP Sets Your Payment

Applicable percentage of AGI5%
Annual amount before credits$2,750.00
Dependent credit-$0.00
Monthly payment$229.17
Interest accruing in month one$243.75
Months to payoff or forgiveness360 / 360
Total you pay$82,500.00
Interest waived by the government$399.94
Principal paid by the government match$7,332.71

Your payment is smaller than the interest accruing, which under older plans meant a growing balance. Under RAP the shortfall is waived and the government still puts $50 a month against principal, so the balance falls anyway.

This projection holds your income flat in today’s dollars, so a real repayment usually finishes sooner. RAP counts toward Public Service Loan Forgiveness. Borrowers whose first loan was disbursed before July 1, 2026 can generally stay on an existing income-driven plan; borrowers who start after that date choose between RAP and a standard plan. Amounts forgiven at year 30 may be taxable income depending on the law in force that year.

Use the RAP Calculator 2026 — Repayment Assistance Plan Payment above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

The Repayment Assistance Plan opened on July 1, 2026 and is the only income-driven repayment plan available to borrowers whose first federal loan is disbursed on or after that date. It replaces the tangle of IBR, PAYE, ICR and SAVE with a single schedule, and it calculates payments in a way none of those plans did.

Every earlier income-driven plan started by subtracting a poverty-line allowance from your income and charging a percentage of what was left. RAP charges a percentage of your whole adjusted gross income, with no allowance subtracted first. The percentage climbs one point for each $10,000 band of income: 1% from $10,001 to $20,000, 2% from $20,001 to $30,000, and so on to a 10% ceiling above $100,000. Below $10,001 the payment is a flat $10. Family size is handled at the end instead of the beginning — $50 comes off the monthly payment for each dependent — and the payment never falls below $10, so RAP has no $0 payment the way SAVE did.

Two features work in the borrower's favour and are the plan's real innovation. Any interest your payment does not cover is waived each month, so the balance cannot grow — the negative amortisation that left borrowers owing more after a decade of payments is gone. And if a payment would reduce principal by less than $50, the government contributes the difference up to $50, which means the balance falls every month even for borrowers paying the $10 minimum. Anything still outstanding after 360 qualifying payments is forgiven.

Thirty years is longer than the twenty or twenty-five years the older plans offered, and that is the trade. RAP payments are lower than IBR payments for many borrowers at the same income, particularly those with dependents, but they run for a decade longer before forgiveness. RAP payments count toward Public Service Loan Forgiveness, which for public-sector borrowers still arrives at 120 payments and makes the thirty-year horizon irrelevant. Borrowers whose first loan predates July 1, 2026 can generally stay where they are; the choice is worth running both ways before switching.

Example: $55,000 income, no dependents, $45,000 balance at 6.5%

  1. 1 Step 1: Find the applicable percentage. An adjusted gross income of $55,000 falls in the $50,001–$60,000 band, so the rate is 5%.
  2. 2 Step 2: The annual payment is $55,000 × 5% = $2,750, which is $229.17 a month.
  3. 3 Step 3: Subtract $50 per dependent. With no dependents there is no reduction, so the payment stands at $229.17 — above the $10 floor.
  4. 4 Step 4: Interest in the first month is $45,000 × 6.5% ÷ 12 = $243.75. The payment does not cover it, so $14.58 of interest is waived and the government adds $50 to principal.
  5. 5 Step 5: For contrast, the standard ten-year payment on the same balance is about $511 a month. RAP roughly halves the payment, but stretches the horizon to as long as 360 months before any remaining balance is forgiven.

Source: Federal Student Aid — Income-driven repayment plans · Last updated: August 2026

Frequently Asked Questions

What is the Repayment Assistance Plan?
RAP is the income-driven repayment plan created by the One Big Beautiful Bill Act. It opened July 1, 2026 and is the only income-driven option for borrowers whose first federal loan is disbursed on or after that date. Payments run from 1% to 10% of adjusted gross income, and any balance left after 360 payments is forgiven.
How is a RAP payment calculated?
It is a percentage of your whole adjusted gross income rather than of discretionary income above a poverty line. The percentage rises one point per $10,000 band, from 1% above $10,000 to a 10% cap above $100,000. Divide the annual figure by twelve, subtract $50 per dependent, and apply a $10 minimum.
Can my balance grow under RAP?
No. Any interest your payment does not cover is waived each month. On top of that, if your payment would reduce principal by less than $50 the government contributes the difference up to $50, so the balance falls every month you pay on time.
Is there a $0 payment under RAP?
No. The minimum is $10 a month regardless of income or dependents. This is a real change from SAVE and the older plans, which produced $0 payments for very low incomes.
How does RAP compare to IBR?
RAP payments are often lower at the same income, especially with dependents, because it uses a low percentage of gross income rather than 10% of discretionary income. The trade is time: RAP forgives at 360 payments where IBR forgives at 240 or 300. Run both before switching.
Does RAP count toward Public Service Loan Forgiveness?
Yes. RAP is a qualifying repayment plan for PSLF, so public-sector borrowers still reach forgiveness at 120 qualifying payments and the thirty-year horizon does not apply to them.
Do I have to switch to RAP?
Not if your first federal loan was disbursed before July 1, 2026 — those borrowers generally keep access to an existing income-driven plan. Borrowers who start after that date choose between RAP and a standard repayment plan.

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