The New Student Loan Repayment Assistance Plan (RAP): How It Works
The Repayment Assistance Plan (RAP) replaces SAVE and most income-driven plans. See how payments are calculated, the $10 minimum, interest help, 30-year forgiveness and what to do now.
Federal student loan repayment changed significantly in 2026. The SAVE plan has ended, and a new income-driven option, the Repayment Assistance Plan (RAP), is now available on StudentAid.gov. If you have federal student loans, here's what you need to know.
What is RAP?
RAP is an income-driven repayment plan created by the 2025 tax and spending law. Your monthly payment is based on your adjusted gross income (AGI) and number of dependents. For loans taken out on or after July 1, 2026, it's one of only two repayment options, along with a tiered standard plan.
How payments are calculated
Your annual payment is a percentage of your AGI that rises with income:
| Adjusted gross income | Annual payment |
|---|---|
| Up to $10,000 | $120 per year ($10 per month) |
| $10,001 – $20,000 | 1% of AGI |
| $20,001 – $30,000 | 2% of AGI |
| … rising 1% per $10,000 … | … |
| $90,001 – $100,000 | 9% of AGI |
| Over $100,000 | 10% of AGI |
Divide by 12, then subtract $50 per month for each dependent you claim. The minimum payment is $10 per month; there are no $0 payments under RAP.
Example: a borrower with $55,000 AGI and one dependent pays 5% of AGI, $2,750 a year, or about $229 a month, minus $50 = about $179 a month.
Help with interest and principal
- Unpaid interest is waived. If your payment doesn't cover the month's interest, the rest is forgiven rather than added to your balance.
- Principal matching. If your payment reduces your principal by less than $50 in a month, the government makes up the difference, up to $50.
That means your balance shouldn't grow on RAP as long as you make your payments.
Forgiveness
Any remaining balance is forgiven after 30 years of qualifying payments. Public Service Loan Forgiveness (PSLF) still exists, and payments under RAP can count toward PSLF's 10-year requirement for eligible borrowers.
What happened to other plans?
- SAVE has ended. Borrowers who were in it must choose another plan.
- IBR remains available for loans disbursed or consolidated before July 1, 2026.
- PAYE and ICR remain for older loans until they sunset on July 1, 2028.
- Parent PLUS loans (and consolidations that include them) are not eligible for RAP.
Is RAP right for you?
Compare plans with the Loan Simulator on StudentAid.gov. In general:
- Low income or large family: RAP's per-dependent reduction and interest waiver can be very helpful.
- Pursuing PSLF: choose the plan with the lowest qualifying payment, since the balance will be forgiven after 10 years of qualifying payments.
- Higher income, older loans: IBR may offer a lower payment cap for some borrowers, so compare both.
- Can afford higher payments: a standard plan pays the loan off faster and with less total interest.
What to do now
- Log in to StudentAid.gov and confirm your loan types, servicer and current plan.
- Run the Loan Simulator with your latest AGI and family size.
- Make sure your servicer has your current address and email, and consider autopay (servicers often offer a small interest rate discount).
- Recertify income on time each year. A missed recertification can raise your payment.
- Build a budget around the new payment. See the 50/30/20 budget and debt payoff strategies.
Be wary of companies charging fees to enroll you in federal plans. Everything can be done free on StudentAid.gov.
Key takeaways
- RAP payments are 1%–10% of AGI, minus $50 per dependent, with a $10 minimum.
- Unpaid interest is waived and the government tops up principal payments to $50.
- Remaining balances are forgiven after 30 years; PSLF still applies.
- SAVE has ended; compare RAP and other plans on StudentAid.gov.
Sources: U.S. Department of Education / StudentAid.gov; reporting on the One Big Beautiful Bill Act student loan provisions (2026).
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