New Student Loan Repayment Assistance Plan (RAP) Calculator Launched
Estimate your monthly payments under the new income-based student loan repayment system
1Introduction to RAP
The Repayment Assistance Plan (RAP) launched on July 1, 2026 as one of only two repayment options for new federal student loan borrowers. This income-driven plan calculates payments based on adjusted gross income (AGI), ranging from a $10 minimum up to 10% of AGI, with $50 deductions per dependent. Unlike previous plans, RAP waives unpaid interest monthly and matches up to $50 of principal, ensuring balances decrease with on-time payments.
2Payment Calculation Method
RAP uses income tiers to determine payments: $10/month for AGI ≤$10,000, scaling up to 10% of AGI for incomes over $100,000. The formula divides the base payment by 12, then subtracts $50 per dependent. Payments never fall below $10/month. For joint filers, AGI combines both incomes and payments are prorated by loan balances. Example: A borrower with $60,000 AGI and no dependents pays $250/month (5% of AGI).
3Comparison to Existing Plans
RAP replaces IBR, PAYE, and ICR for post-2026 borrowers, offering simpler calculations than discretionary income-based plans. While RAP extends forgiveness to 30 years (vs 20-25 in older plans), it prevents negative amortization by canceling unpaid interest monthly. Current IDR plans may offer lower payments for very low incomes - a $25k AGI borrower pays $0 under IBR vs $10 under RAP - but RAP benefits middle-income borrowers with more predictable terms.
4Enrollment Process
Borrowers can enroll in RAP online at StudentAid.gov in about 10 minutes, authorizing automatic IRS income verification. Processing typically takes 2-3 weeks. Those with income drops since last filing can submit alternative documentation. Paper applications remain unavailable as of September 2026. Existing SAVE plan borrowers are being transitioned out in groups with 90-day notices, with 7 million still in SAVE as of June 2026.
5Credit for Previous Payments
Time spent in IBR, PAYE, or ICR counts toward RAP's 360-payment forgiveness clock, but RAP months don't count backward if switching to older plans. This prevents borrowers from exploiting lower RAP payments then returning to shorter forgiveness timelines. All RAP payments qualify for Public Service Loan Forgiveness (PSLF), maintaining the 120-payment requirement for eligible public service workers.
6Tax Considerations
Married borrowers filing separately face significant penalties under the new legislation. The $50/dependent deduction only applies if claimed on taxes. Borrowers considering changing filing status should consult tax professionals, as the new law imposes harsh penalties on Married Filing Separately (MFS) status. AGI verification occurs annually, requiring borrowers to recertify income each year.
7Calculator Functionality
The RAP calculator estimates payments by inputting AGI and dependents. It instantly shows monthly obligations under the new system, allowing comparisons with the tiered Standard Repayment Plan. For comprehensive analysis, users should also run numbers through traditional loan calculators to compare fixed payment options. The tool helps borrowers understand long-term costs under different repayment strategies.
8Strategic Implications
RAP represents a fundamental shift in federal student loan repayment, prioritizing simplicity and payment predictability over potential short-term savings. While benefiting middle-income borrowers with stable payments, it may cost higher earners more over time. The 30-year term and interest forgiveness provisions aim to prevent debt spirals, reflecting broader trends toward income-based repayment solutions in education financing.