How The Repayment Assistance Plan (RAP) Works: Payments, Eligibility, And Forgiveness

The list of federal student loan repayment plans is down to two for new borrowers: the Tiered Standard Plan and the Repayment Assistance Plan, known as RAP. The Department of Education finalized the rules on April 30, 2026 and opened enrollment July 1.

If you borrowed before July 1, 2026, you still have a choice between RAP and the amended IBR plan until July 1, 2028. That decision matters more than anything else on this page, so start with our RAP vs. IBR decision tree if you haven't picked yet.

Here's how RAP calculates your payment, who can use it, what a late payment costs you, and the details that catch borrowers off guard: especially married couples and anyone with Parent PLUS debt.

Who Is Eligible For RAP

If any federal student loan (including a Direct Consolidation Loan) is first disbursed on or after July 1, 2026, your only repayment options are RAP and the Tiered Standard Plan.

That applies to all of your Direct Loans, even ones first disbursed before July 1, 2026.

RAP is open to:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Grad PLUS Loans
• Direct Consolidation Loans that do not include a Parent PLUS loan

RAP is not available for:

• Parent PLUS Loans
• Direct Consolidation Loans that include a Parent PLUS loan
• Double-consolidation loans that include a consolidation loan containing a Parent PLUS loan

If you hold a mix of eligible and ineligible loans, the Parent PLUS-linked debt can be kept on the Tiered Standard Plan separately from your RAP-eligible loans.

FFEL, Perkins, and HEAL Program loans can't be repaid under RAP or the Tiered Standard Plan at all — those stay on their existing plans.

How Your Monthly Payment Is Calculated

Your RAP payment starts with your Adjusted Gross Income (AGI). The Department applies a percentage based on your AGI bracket, divides by 12 to get a monthly amount, then subtracts $50 for each dependent you claim on your tax return.

The minimum payment is $10 a month.

RAP payments are:

• 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

A single borrower earning $55,000 with no dependents would pay about $229 per month ($55,000 × 5% ÷ 12). A borrower earning $75,000 with two dependents would pay roughly $337 per month ($75,000 × 7% ÷ 12 = $437.50, minus $100 for the two dependents).

You can run your exact numbers through The College Investor's RAP Calculator.

To enroll, go to StudentAid.gov, and you'll authorize the Department to pull your income and dependent data from the IRS, or you'll submit documentation yourself. Your payment re-certifies annually based on updated numbers.

How To Enroll In RAP

You apply through your StudentAid.gov account. The Department of Education says the application takes about 10 minutes. You'll authorize it to pull your income and dependent data from the IRS, or submit documentation yourself if your income has changed since your last return.

Your servicer processes the switch. Given the IDR backlog history, keep paying on your current plan until the new amount shows up on your account. Your payment recertifies annually from updated tax data.

Alert: If you're still on SAVE

SAVE ended July 1, 2026. Servicers are moving borrowers out in groups, and each borrower gets a 90-day clock once notified. Under Secretary Nicholas Kent told us roughly 7 million borrowers were still in SAVE in June. Your main choices are RAP or IBR and here's the exit-plan timeline.

Interest Subsidy And Matching Principal Payment

Two features give RAP an advantage over IBR for some borrowers.

Interest subsidy. If your full, on-time payment doesn't cover the interest that accrued since your last due date, the Department waives it. If you make every monthly payment on time, your balance should never exceed what you owed when you first entered RAP.

Matching principal payment. When your full, on-time payment reduces your principal by less than $50, the secretary of education adds a matching contribution to bring the principal reduction up to $50 (or the total you paid, if less than $50). Make a $10 required minimum payment, your principal reduces by $10. 

The catch: paying more than your required monthly payment can reduce or eliminate both benefits. Any amount above the bill goes to accrued interest first, then principal, which can reduce or eliminate the subsidy and matching payment for that month.

There's a second catch: if you pay your monthly payment before the due date, it only waives your interest through when your payment posts. Setting up auto pay is the best way to handle it to make sure you get the full interest subsidy every month and not accidentally pay early.

Bottom line: if you're on the RAP plan, it's likely not in your best interest to make additional payments. Use additional money to start investing. If you goal is loan repayment, consider a fully amortized repayment plan, like the standard plan.

What Happens If You Pay Late Or Miss A RAP Payment

A late, partial, or missed payment costs you the interest subsidy and the $50 principal match for that month. The month also doesn't count toward your 360-payment forgiveness clock or toward PSLF. The Department's own description is "full, on-time" payments, and both words matter.

Standard delinquency and default rules apply on top of the lost benefits. With wage garnishment on defaulted loans restarting this fall, the cost of falling behind is higher than it's been in years.

The solution is autopay.

Interest that accrues during deferment or forbearance isn't subsidized either, and those months don't count toward the 360.

Married Borrowers: How Spousal Income Works

Married borrowers need to pay attention to how filing status shapes the payment.

Joint filers, both spouses have federal student loans. The calculation uses combined AGI, but the payment is reduced to reflect the spouse's own federal loan balance. The monthly payment burden gets shared across both borrowers. For example, let's take a couple who make $120,000 combined with two kids. You both have equal loans of $30,000 each. Your combined monthly student loan payment would be $900 per month, or technically $450 each.

Joint filers, only one spouse has federal student loans. Combined AGI still drives the payment, and there's no spousal-loan reduction to soften it. This scenario tends to produce the highest RAP payment for a married borrower. So, in the situation above, $120,000 combined AGI with two kids, but the monthly payment is still $900 - for just the single borrower.

Separate filers. Only your income and the dependents you claim on your own return count. Filing separately can sharply lower a RAP payment when the non-borrower spouse earns more but it can also cost you at tax time by disqualifying you from credits and deductions (including the student loan interest deduction). Run both scenarios before choosing.

What To Know About Switching Plans

Existing borrowers with RAP-eligible loans can opt in once RAP goes live. Payments already made under IBR, PAYE, ICR, or SAVE generally count toward RAP's 360-payment discharge threshold, so borrowers don't start from scratch. 

However, given that RAP is a 30 year timeframe versus IBR at 20 or 25 years, it may make more sense to choose IBR moving forward. Here's the RAP vs. IBR decision tree to follow.

It's important to note: a borrower CAN switch from RAP to IBR (if they're an existing borrower with IBR access), but RAP months do not count toward IBR's 20- or 25-year forgiveness clock. 

PSLF, Loan Forgiveness, And Taxes

Payments under RAP generally count toward Public Service Loan Forgiveness (PSLF), provided they're made on time and in full. 

For RAP's own time-based loan forgiveness, any remaining balance is forgiven after 360 qualifying on-time, full payments over at least 30 calendar years.

However, you may owe federal and state income tax on the discharged amount. This is called the student loan tax bomb and you should plan accordingly. Check out The College Investor's Tax Bomb Calculator for estimates.

Frequently Asked Questions

Does interest capitalize if I leave RAP for another repayment plan?

Under the 2023 capitalization rule, most plan-change capitalization events were eliminated for federal student loans, so unpaid interest generally stays as interest rather than rolling into principal when you switch. The April 2026 final rule for RAP didn't reverse that. If your servicer capitalizes interest when you leave RAP, ask them to cite the rule.

Do I need to consolidate my loans to enroll in RAP?

No. Direct Subsidized, Direct Unsubsidized, Grad PLUS, and Direct Consolidation Loans that don't include Parent PLUS debt are all eligible on their own. Consolidation only matters if you have FFEL or Perkins loans you want to bring into RAP, or as a path out of default.

What counts as an "on-time" payment?

A full payment received by your due date. Servicers apply their standard late-payment window for delinquency reporting, but the RAP subsidy and match are tied to the due date. Autopay is the safest way to never test the edge.

Can I pay extra without losing the interest subsidy?

Be careful. Anything above the billed amount goes first to accrued interest, then principal, and that can reduce or eliminate both the subsidy and the $50 match for that month.

Can I switch between RAP and the Tiered Standard Plan?

Yes. Borrowers with RAP-eligible loans can elect either plan and switch between them, though the Department typically requires all of your Direct Loans to be on the same plan (with the Parent PLUS exception above).

What if my income changes mid-year?

RAP recalculates annually from updated income and dependent data. If your income drops significantly (job loss, reduced hours), you can recertify early so the payment adjusts. If your income rises, you won't see a higher payment until the next annual cycle.

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