How the Repayment Assistance Plan (RAP) works
The Repayment Assistance Plan (RAP) is a new income-driven repayment plan created by the One Big Beautiful Bill Act. It becomes available July 1, 2026, and replaces SAVE. Your monthly payment is a percentage of your adjusted gross income (AGI) that rises with income:
| Annual AGI | Payment rate |
|---|
- The rate applies to your full AGI, then divided by 12 for a monthly payment.
- Your payment is reduced by $50 for each dependent you claim.
- The minimum payment is $10 per month, no matter how low your income.
- Any balance remaining after 30 years (360 payments) is forgiven.
- No negative amortization: the government covers unpaid interest each month you pay, and adds up to $50/month toward principal.
RAP vs SAVE vs IBR — what changed?
SAVE is being eliminated. If you were on SAVE you must choose a new plan — see our SAVE is ending guide.
| Plan | Payment | Forgiveness | Status |
|---|---|---|---|
| RAP | 1–10% of AGI, −$50/dependent | 30 years | New (Jul 1, 2026) |
| New IBR | ~10% of discretionary income | 20–25 years | Available |
| SAVE | — | — | Being eliminated |
Frequently asked questions
When can I enroll in RAP?
RAP becomes available July 1, 2026 for borrowers with eligible federal Direct Loans.
How is my RAP payment calculated?
Find your AGI in the table above, multiply your AGI by that percentage, divide by 12, then subtract $50 for each dependent. The result is never less than $10 per month. This calculator does it for you.
Will my loan balance grow under RAP?
No. RAP waives unpaid interest each month you make a payment, and adds up to $50 toward principal if your payment is small — so your balance does not grow while enrolled.
What happens to my balance after 30 years?
Any remaining balance is forgiven after 360 qualifying monthly payments (30 years).
Does this tool store my financial information?
No. The calculation runs entirely in your browser. Nothing is uploaded or saved.
Methodology & sources
Payments use the published RAP formula (integer bracket % of full AGI ÷ 12, minus $50/dependent, $10 minimum). The 30-year projection re-certifies your income yearly, waives unpaid interest, and applies the $50/month principal match. Sources:
- One Big Beautiful Bill Act (P.L. 119-21) — RAP provisions
- StudentAid.gov — repayment plans and enrollment
- Congress.gov — statutory text
Spotted an error? Tell us — we update for accuracy.
Disclaimer: This calculator is an educational estimate based on publicly available information about the 2026 Repayment Assistance Plan and is not financial advice. Final servicer implementation and regulations may differ. Confirm your actual payment with your loan servicer or StudentAid.gov.