Repayment Assistance Plan (RAP): Payments, Eligibility & Forgiveness
The Ultimate Guide to Repayment Assistance Plan
The Repayment Assistance Plan is a federal income-driven repayment option for eligible Direct Loan borrowers. Since July 1, 2026, borrowers can apply for RAP through Federal Student Aid.
Unlike fixed plans, RAP uses adjusted gross income and qualifying dependents to calculate payments. In addition, it offers interest relief and qualifying principal support.
However, RAP is not the best fit for everyone. Compare eligibility, total costs, and forgiveness timelines before switching plans.
Free first review. Optional paid document help. StuLo is not a government agency.
What Is the Repayment Assistance Plan?
The Repayment Assistance Plan (RAP) is a federal income-driven repayment plan. It adjusts eligible student loan payments based on your adjusted gross income, or AGI, and your dependents.
Moreover, RAP became available on July 1, 2026. Borrowers with eligible Direct Loans can apply even when those loans originated earlier.
For borrowers who receive a new Direct Loan disbursement on or after July 1, 2026, RAP is generally the only available income-driven plan. Therefore, loan dates matter as much as loan type.
Income-Based Formula
RAP uses 1% to 10% of annual AGI, depending on the applicable income bracket.
Dependent Reduction
Qualifying dependents can reduce the calculated payment by $50 each month per dependent.
Long-Term Relief
Eligible balances may receive discharge after 30 years of qualifying payments.
Who Qualifies for the Repayment Assistance Plan?
RAP generally accepts eligible federal Direct Loans. For example, Direct Subsidized, Direct Unsubsidized, and graduate Direct PLUS loans can qualify.
Likewise, some Direct Consolidation Loans qualify. However, loans connected to Parent PLUS borrowing cannot enter RAP, including certain double consolidations.
| Federal loan type | RAP eligibility |
|---|---|
| Direct Subsidized and Unsubsidized | Generally eligible |
| Direct Graduate PLUS | Generally eligible |
| Direct Consolidation without Parent PLUS | Generally eligible |
| Parent PLUS | Not eligible |
| Consolidation including Parent PLUS | Not eligible, including double consolidations |
| FFEL or Perkins | Not directly eligible; evaluate consolidation requirements and consequences |
| Private student loans | Not eligible |
Important: A loan in default is not directly eligible for IDR repayment. However, borrowers may have rehabilitation or qualifying consolidation options.
How Are RAP Monthly Payments Calculated?
First, the government selects a percentage based on your annual AGI. That percentage ranges from 1% to 10% across defined income brackets.
Next, divide the resulting annual amount by 12. Then subtract $50 per dependent claimed on your federal tax return.
However, your required RAP payment cannot fall below $10 per month. Also, married borrowers may have different income treatment depending on tax filing status.
Example: A borrower with $45,000 AGI falls in the 4% bracket. The base is $150 monthly. With one qualifying dependent, the illustrative payment becomes $100.
Repayment Assistance Plan Income Brackets
The following table shows the percentage used to calculate the annual RAP base payment. Afterward, the calculation accounts for dependents and the $10 monthly floor.
| Adjusted gross income (AGI) | Annual base calculation |
|---|---|
| $10,000 or less | $120 per year ($10 monthly base) |
| $10,000.01–$20,000 | 1% of AGI |
| $20,000.01–$30,000 | 2% of AGI |
| $30,000.01–$40,000 | 3% of AGI |
| $40,000.01–$50,000 | 4% of AGI |
| $50,000.01–$60,000 | 5% of AGI |
| $60,000.01–$70,000 | 6% of AGI |
| $70,000.01–$80,000 | 7% of AGI |
| $80,000.01–$90,000 | 8% of AGI |
| $90,000.01–$100,000 | 9% of AGI |
| More than $100,000 | 10% of AGI |
These figures describe the base formula, not necessarily your final bill. Accordingly, use the federal calculator for a personalized estimate.
RAP Interest Subsidy and Principal Benefits
Under RAP, your monthly payment may not cover all the interest that accrues. When this happens, the federal government subsidizes the unpaid monthly interest after your required payment.
In addition, a qualifying full and on-time payment may trigger principal support. If your payment reduces principal by less than $50, the government can provide a matching reduction under program rules.
Unpaid Interest
The federal subsidy can prevent unpaid monthly interest from accumulating after a qualifying RAP payment.
Principal Match
A matching principal benefit can help eligible borrowers make progress even when their payments are small.
Pay On Time
Full, timely monthly payments matter for accessing plan benefits and building qualifying payment history.
Consider the full cost: Interest relief does not mean every borrower will save money compared with faster repayment.
Does the Repayment Assistance Plan Offer Loan Forgiveness?
RAP provides a pathway to discharge after 30 years, or 360 months, of qualifying payments. However, you might repay your entire balance before reaching that milestone.
Public Service Loan Forgiveness offers a different route. For example, eligible borrowers who satisfy PSLF employment and payment requirements may qualify after 120 qualifying payments.
Additionally, tax treatment may vary by the type and timing of a discharge. Therefore, review current tax rules before treating potential forgiveness as a guaranteed savings amount.
Repayment Assistance Plan vs. Income-Based Repayment
Both RAP and Income-Based Repayment (IBR) use income information. However, their payment formulas and possible repayment periods differ.
For older eligible loans, IBR may remain an option. By contrast, borrowers with new Direct Loan disbursements on or after July 1, 2026 generally have RAP as their only IDR choice.
| Feature | RAP | IBR |
|---|---|---|
| Payment basis | 1–10% of AGI; $50 per claimed dependent | Generally 10% or 15% of discretionary income |
| Minimum payment | $10 monthly | May be $0 |
| Discharge timeline | 30 qualifying years | Generally 20 or 25 qualifying years |
| New loans after July 1, 2026 | Generally available for eligible Direct Loans | Generally unavailable to borrowers with a new post-date Direct Loan disbursement |
For a tailored comparison, review existing payment counts, loan dates, and estimated lifetime cost.
How RAP Affects SAVE, PAYE, and ICR Borrowers
A federal court order ended the SAVE repayment plan in 2026. Consequently, affected borrowers must review available replacement plans and servicer instructions.
Also, PAYE and Income-Contingent Repayment (ICR) will end no later than July 1, 2028. However, the right replacement plan depends on individual loan history.
Switching plans can change how progress counts toward income-driven discharge. Therefore, check federal guidance before giving up previously earned qualifying credit.
Next step: Review your loan types and current repayment plan in your StudentAid.gov dashboard.
How to Apply for the Repayment Assistance Plan
First, sign in to StudentAid.gov using your FSA ID. Check your loan types, disbursement dates, and current servicer.
Next, open the free income-driven repayment application. You can authorize access to IRS tax information or provide permitted income documentation.
Finally, compare plan estimates and submit your request. Afterward, watch your loan servicer account for processing updates and payment instructions.
How StuLo Helps You Explore RAP Options
StuLo can help borrowers understand available federal repayment paths and organize relevant application documents. Additionally, its optional services may help simplify preparation.
However, StuLo is a private company and does not administer RAP. The federal IDR application is free, and borrowers can apply without paid assistance.
Before purchasing services, ask about scope, fees, and what StuLo can actually provide. That way, you can evaluate the service against free federal resources.
Repayment Assistance Plan FAQs: Payments and Eligibility
What is the minimum monthly RAP payment?
The minimum payment is $10 each month. However, your actual bill may be higher based on AGI and qualifying dependents.
How much does each dependent reduce my payment?
RAP generally reduces the calculated monthly payment by $50 per dependent claimed on your federal tax return. However, the $10 floor still applies.
Can Parent PLUS loans use RAP?
No. Parent PLUS loans and consolidation loans that repaid Parent PLUS loans cannot use RAP. This exclusion also covers certain double consolidations.
Can I use RAP with private student loans?
No. RAP applies only to eligible federal Direct Loans. Consequently, private loan borrowers must review their lender-specific repayment options.
Repayment Assistance Plan FAQs: Forgiveness and Changes
How long until RAP loan forgiveness?
RAP can discharge a remaining eligible balance after 30 years of qualifying payments. However, eligible borrowers may separately qualify for PSLF sooner.
Does RAP help with unpaid interest?
Yes. When your required payment does not cover monthly interest, a federal subsidy addresses the unpaid amount under RAP rules.
Can I switch from IBR to RAP?
Some borrowers can. However, switching may alter progress toward certain types of IDR discharge. Review your loan history before proceeding.
Is the RAP application free?
Yes. You can apply through StudentAid.gov without paying a company. StuLo offers separate, optional assistance that may involve a fee.
Explore Repayment Assistance Plan Options With Confidence
The Repayment Assistance Plan may offer manageable payments and meaningful interest support. However, it also comes with eligibility rules and a long discharge timeline.
Compare repayment costs, other qualifying plans, and federal forgiveness options first. Then decide whether optional StuLo assistance meets your needs.
Official resources: IDR plan FAQs · RAP rules and payment brackets · Federal Loan Simulator
Disclosure: StuLo is a private company and is not affiliated with or endorsed by the U.S. Department of Education. Federal repayment applications are free. StuLo may charge for optional document preparation services. Program benefits and eligibility vary by borrower.