Key Points
- The Repayment Assistance Plan (RAP) launched July 1, 2026 and is now one of only two repayment options for new federal student loan borrowers.
- Monthly payments scale with adjusted gross income, from a $10 minimum up to 10% of AGI, minus $50 per dependent.
- RAP waives unpaid interest each month and matches up to $50 of principal, so on-time payments always shrink your balance. Forgiveness comes after 360 payments (30 years).
Our RAP calculator estimates your monthly payment under the Repayment Assistance Plan, the income-based plan created by last year’s student loan overhaul. Enter your adjusted gross income and dependents and you’ll have a number in seconds.
RAP replaces the old income-driven repayment plans (IBR, PAYE, and ICR) for anyone who borrowed on or after July 1, 2026. Existing borrowers can enroll now.
The formula uses discretionary income to calculate your payment, while RAP ties your payment directly to adjusted gross income (AGI) using income tiers.
The only other option for new borrowers is the new tiered Standard Repayment Plan. If you want to compare a fixed payment against RAP, run both numbers through our main student loan calculator too.
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Repayment Assistance Plan (RAP) Calculator
Here is the RAP calculator:
Student Loan RAP Calculator
Your Monthly Payment:
function calculateRAPPayment() {
const agi = parseFloat(document.getElementById('rap-agi').value);
const dependents = parseInt(document.getElementById('rap-dependents').value) || 0;
if (isNaN(agi) || agi < 0) {
alert('Please enter a valid AGI amount');
return;
}
if (isNaN(dependents) || dependents < 0) {
alert('Please enter a valid number of dependents');
return;
}
let basePercentage;
if (agi <= 10000) {
basePercentage = 120; // Flat rate of $120 annually
} else if (agi <= 20000) {
basePercentage = 0.01;
} else if (agi <= 30000) {
basePercentage = 0.02;
} else if (agi <= 40000) {
basePercentage = 0.03;
} else if (agi <= 50000) {
basePercentage = 0.04;
} else if (agi <= 60000) {
basePercentage = 0.05;
} else if (agi <= 70000) {
basePercentage = 0.06;
} else if (agi <= 80000) {
basePercentage = 0.07;
} else if (agi <= 90000) {
basePercentage = 0.08;
} else if (agi <= 100000) {
basePercentage = 0.09;
} else {
basePercentage = 0.10;
}
let monthlyPayment;
if (agi <= 10000) {
monthlyPayment = 120 / 12;
} else {
monthlyPayment = (agi * basePercentage) / 12;
}
monthlyPayment -= (dependents * 50);
monthlyPayment = Math.max(10, monthlyPayment);
const resultDiv = document.getElementById('rap-result');
const paymentDiv = document.getElementById('rap-monthly-payment');
resultDiv.style.display = 'block';
paymentDiv.textContent = '$' + monthlyPayment.toFixed(2);
}
How The RAP Formula Works
RAP payments are based on annual income brackets (based on adjusted gross income or AGI):
- AGI ≤ $10,000: Flat payment of $120/year ($10/month)
- $10,001–$20,000: 1%
- $20,001–$30,000: 2%
- $30,001–$40,000: 3%
- $40,001–$50,000: 4%
- $50,001–$60,000: 5%
- $60,001–$70,000: 6%
- $70,001–$80,000: 7%
- $80,001–$90,000: 8%
- $90,001–$100,000: 9%
- AGI > $100,000: 10% of AGI
To determine a borrower’s monthly payment, the base payment is divided by 12 and adjusted by subtracting $50 for each dependent claimed on the borrowers’ tax return.
If the calculation ends up less than $10 per month, the borrower would pay a minimum of $10/month.
Married Borrowers: Your AGI will be based on your tax filing status. If you file jointly, it’s your combined AGI. If you both have loans, it’s pro-rated to each of your loan balances.
If you file separately, if you’re MFS AGI. For dependents and MFS, the dependent must be claimed on your tax return. Be aware that the new bill imposes a LOT of other penalties on MFS. Please run this through a tax professional before changing your tax filing status.
Examples:
- A borrower with an AGI of $25,000 and two children would pay $10/month.
- A borrower with an AGI of $60,000 and no dependents would pay $250/month.
- A borrower with an AGI of $120,000 and one child one pay $950/month.
Comparing RAP To Current IDR Plans
Unlike RAP, existing income-driven repayment (IDR) plans such as IBR, PAYE, and ICR rely on a borrower’s discretionary income, which is calculated using federal poverty guidelines. For example, PAYE requires 10% of discretionary income over 150% of the poverty level. This method can produce lower monthly payments for low-income borrowers, but the calculations can be confusing.
RAP simplifies this process with income tiers and automatic interest forgiveness for some borrowers. While it imposes a longer maximum repayment term (30 years), it eliminates the risk of negative amortization by canceling unpaid interest each month.
IBR and PAYE offer forgiveness after 20 or 25 years, depending on the borrower’s loan type and when they entered repayment. RAP standardizes forgiveness at 360 monthly payments, or 30 years, but offers a consistent structure across income levels.
From a monthly payment perspective, using the above examples, a borrower on IBR today would pay (new IBR):
- A borrower with an AGI of $25,000 and two children would pay $0/month on IBR.
- A borrower with an AGI of $60,000 and no dependents would pay $312/month on IBR.
- A borrower with an AGI of $120,00 with one child would pay $745/month on IBR.
As you can see, RAP would benefit the lower income borrowers, but would be more costly for the higher income borrower. That’s why there are winners and losers in this proposal.
See the full RAP vs. Amended IBR breakdown.
How To Enroll In RAP
The best way to enroll in RAP is to apply online at StudentAid.gov. The Department of Education says the application takes about 10 minutes, and you’ll authorize the IRS to share your tax data so your income is pulled automatically. If your income has dropped since your last return, you can submit alternative documentation instead.
Your servicer processes the switch. We’re currently seeing borrowers processed in as quickly as two days, with the average taking 2 to 3 weeks. Some borrowers are still waiting.
If you want to file a paper application, the RAP option is still not available as of September 2026.
What SAVE Borrowers Need To Know
SAVE ended and borrowers still in the SAVE forbearance are being moved out in groups, with each borrower getting a 90-day clock once their servicer notifies them. Roughly 7 million borrowers were still in SAVE as of June, according to Under Secretary of Education Nicholas Kent. If you haven’t picked a plan, here’s the exit-plan timeline.
Time already spent in IBR, ICR, or PAYE counts toward RAP’s 360-payment clock. The reverse isn’t true: if you go to RAP and later switch back to IBR, your RAP months don’t count toward IBR forgiveness. They don’t want people taking advantage of a lower RAP payment, then jumping back for a shorter IBR forgiveness timeline.
Frequently Asked Questions
Does RAP count for Public Service Loan Forgiveness?
Yes. RAP is a qualifying plan for PSLF, so 120 on-time payments while working for a qualifying employer gets you tax-free forgiveness long before the 30-year mark.
Can I use RAP for Parent PLUS loans?
No. Parent PLUS loans, and Direct Consolidation Loans that include a Parent PLUS loan, aren’t eligible for RAP.
My spouse and I both have loans. Do we pay double?
No. If you file jointly, RAP calculates one payment on your combined AGI and prorates it between your loan balances.
Can I switch from RAP back to IBR?
Yes, if you’re an existing borrower who’s still eligible for IBR before July 1, 2028. Your months on RAP won’t count toward IBR forgiveness.
Is the balance forgiven after 30 years taxable?
Under current law, forgiveness after 360 RAP payments may be taxable income in the year it’s discharged. Use our Student Loan Tax Bomb Calculator to estimate the hit.
Do I have to recertify my income every year?
Yes. Like the old IDR plans, RAP payments are recalculated annually from your tax data. Authorizing IRS data sharing when you apply keeps that automatic.
Final Thoughts
RAP is simpler than what it replaced, and the interest waiver plus principal match fix the balance-growth problem that defined the last decade of income-driven repayment. It isn’t the cheapest option for everyone. Higher earners with legacy loans will often do better on IBR while it’s still available, and anyone chasing PSLF just needs the lowest qualifying payment.
Run your numbers above, then check the two comparisons linked earlier. And if you haven’t set up autopay, do it before September 30.
Don’t Miss These Other Stories:
SAVE Student Loan Plan Timeline Estimates: What To Expect
Court Deals Final Blow To End SAVE Student Loan Repayment Plan
How To Legally Reduce Your IDR Payment (And Avoid Fraud)
Editor: Colin Graves
The post Repayment Assistance Plan (RAP) Student Loan Calculator appeared first on The College Investor.
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