Key Points
- New RAP and Tiered Standard Repayment Plan are now live on the online StudentAid IDR Application
- Paper application is still not finalized for RAP
- Borrowers are experiencing slow load times after a weekend-long system update
The Department of Education's latest release updates the systems behind StudentAid.gov accounts to reflect the repayment changes from the One Big Beautiful Bill Act (OBBBA). This comes after a massive weekend system update that had StudentAid down for nearly the entire weekend.
The headline change for borrowers: RAP is now a selectable option inside the Income-Driven Repayment Plan Request, the same online application used for existing IDR plans. You can see the other update headlines in this announcement.
You can see the options in your IDR application:
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Why It Matters
RAP is one of two new repayment structures created by OBBBA, alongside a Tiered Standard Plan.
For borrowers taking out federal loans after July 1, 2026, RAP and the Tiered Standard Plan become the only options, replacing the menu of income-driven plans many borrowers know today. Existing borrowers still have access to IBR, PAYE, and ICR.
Being able to apply online (rather than by paper) removes a step for the millions of borrowers who will need to pick a plan in the coming months, including those exiting the blocked SAVE plan.
The Details
RAP bases payments on adjusted gross income, scaling from a $10 monthly minimum up to 10% of AGI (for those making over $100,000 per year), with a $50-per-month reduction for each dependent.
Two features set it apart from older plans: unpaid interest does not grow the balance, and the principal is guaranteed to drop by up to $50 a month. The Department says the online application takes roughly 10 minutes to complete.
The update also refreshed several other tools and forms, including My Aid, Loan Consolidation, entrance and exit counseling, and TEACH Grant counseling. Loan Simulator has been retired and replaced with a new Repayment Calculator that pulls verified income and includes the new plans.
One practical note from our testing this morning: StudentAid.gov is loading very slowly. Borrowers who hit delays may want to try again during off-peak hours rather than assume the application is down.
How This Connects
The College Investor has tracked RAP closely since it was written into the OBBBA. Our explainer on how RAP works breaks down the new payment math, the $50 principal match, and who qualifies, while our RAP vs. IBR comparison helps borrowers weigh which plan costs less over time.
We also flagged the June 27–28 StudentAid.gov outage that preceded this release.
Starting July 1, borrowers enrolled in the SAVE plan begin receiving servicer notifications and will have 90 days to choose a new plan. With the online RAP application now live, borrowers who want to move can start the process today — slow load times permitting.
Anyone deciding on their options should run The College Investor's Student Loan Calculator based on their individual financial situation.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.