Key Points
- Under Secretary of Education Nicholas Kent said nearly 46,000 borrowers submitted applications to enroll in the new Repayment Assistance Plan (RAP) on its official July 1 launch day.
- RAP is one of two new repayment plans created by the One Big Beautiful Bill Act, and the only income-driven option for borrowers taking out federal loans after July 1, 2026.
- Roughly 7 million borrowers still in the blocked SAVE plan must pick a new plan within a 90-day window after their servicer notifies them.
The Department of Education's new income-driven Repayment Assistance Plan (RAP) officially launched July 1, and nearly 46,000 borrowers submitted applications to enroll on day one, according to Under Secretary of Education Nicholas Kent.
Kent shared the figure in a post on X Wednesday: "@usedgov launched the new income-driven Repayment Assistance Plan today, and nearly 46,000 borrowers have already submitted an application to enroll! Visit StudentAid.gov to switch plans today!"
.@usedgov launched the new income-driven Repayment Assistance Plan today, and nearly 46,000 borrowers have already submitted an application to enroll!
— ED Under Secretary (@EDUnderSecKent) July 1, 2026
Visit https://t.co/H2AcBKL7Gq to switch plans today! https://t.co/jJcClX5ib4
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Why It Matters
July 1 marked the largest single-day change to federal student loans in decades: RAP and the new Tiered Standard Plan went live, new graduate and Parent PLUS borrowing caps took effect, and the 90-day transition clock started for SAVE borrowers.
A day-one count of 46,000 applications shows borrowers were eager for the launch, but it's a small fraction of the roughly 7 million borrowers who still need to leave the SAVE forbearance. Servicers are notifying those borrowers in tranches, and each group has 90 days from notification to choose a new plan.
The Details
RAP bases payments on adjusted gross income, scaling from a $10 monthly minimum up to 10% of AGI for those earning over $100,000, with a $50-per-month reduction for each dependent.
Two features separate it from older income-driven plans: unpaid interest doesn't grow the balance, and the government matches up to $50 per month toward principal, so on-time payments always reduce what you owe.
The Department says the online application takes about 10 minutes at StudentAid.gov, and borrowers who enroll in autopay get a 1% interest rate reduction.
The online application has only been available since June 29, when RAP appeared as a selectable option in the Income-Driven Repayment Plan Request. A paper application still isn't finalized, and borrowers have reported slow load times during the rollout, which followed a weekend-long StudentAid.gov outage that lasted well into Monday.
How This Connects
In The College Investor's interview last month, Kent previewed exactly this push. He called RAP's interest subsidy and principal match a fix for negative amortization, told borrowers "don't wait until July 2nd" to act, and noted more than 300,000 SAVE borrowers had already switched plans before the launch.
Borrowers comparing options can run the numbers with The College Investor's RAP calculator and our RAP vs. IBR comparison before applying.
Expect application volume to climb as servicer notifications reach more of the 7 million SAVE borrowers this summer and fall. Anyone weighing RAP against IBR or the Tiered Standard Plan should compare monthly payments and long-term costs based on their own situation and apply well before their 90-day window closes.
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.