RAP Student Loan Calculator (Repayment Assistance Plan)
The Repayment Assistance Plan (RAP) opened on July 1, 2026 and is now the main income-driven plan for federal student loans. Your payment is a share of your whole AGI, minus $50 a month for each dependent, and the government waives unpaid interest and adds up to $50 a month toward principal. Enter your numbers to see your payment, how long you would pay, and how it compares with a fixed plan.
From your last tax return. Married filing jointly: use your combined AGI.
RAP payment by income
RAP uses one rate on your whole AGI, not a marginal rate like tax brackets. The yearly amount is divided by 12, then $50 is taken off for each dependent. The lowest payment is $10 a month.
| Adjusted gross income | Yearly RAP payment |
|---|---|
| $10,000 or less | $10 a month minimum |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% |
| $30,001 to $40,000 | 3% |
| $40,001 to $50,000 | 4% |
| $50,001 to $60,000 | 5% |
| $60,001 to $70,000 | 6% |
| $70,001 to $80,000 | 7% |
| $80,001 to $90,000 | 8% |
| $90,001 to $100,000 | 9% |
| Over $100,000 | 10% |
Examples (3% raises a year)
| Situation | First RAP payment | 10-year standard | Result under RAP |
|---|---|---|---|
| $30,000 loan, $35,000 AGI | $87.50 | $340.64 | Paid off in 22 yrs |
| $30,000 loan, $55,000 AGI | $229.17 | $340.64 | Paid off in 11 yrs |
| $45,000 loan, $60,000 AGI, 2 dependents | $150.00 | $510.97 | Paid off in 17 yrs |
| $80,000 loan, $75,000 AGI, 1 dependent | $387.50 | $928.87 | Paid off in 18 yrs |
| $120,000 loan, $95,000 AGI | $712.50 | $1,393.30 | Paid off in 18 yrs |
The two RAP benefits most people miss
- No growing balance. If your payment is less than the monthly interest, the rest of the interest is not charged. Your balance cannot grow while you make on-time payments.
- Principal match. If your payment lowers your principal by less than $50 in a month, the government adds the difference (up to the size of your payment), so your balance keeps going down.
RAP vs the Tiered Standard Plan
Loans made on or after July 1, 2026 have two choices: RAP or the new Tiered Standard Plan, a fixed payment over 10 to 25 years based on the amount owed (10 years under $25,000, 15 years under $50,000, 20 years under $100,000 and 25 years above that). RAP is usually lower at the start for people with modest incomes. The fixed plan can cost less in total if your income is high.
How this calculator works
It finds your RAP rate from your AGI, takes $50 off per dependent, and simulates every month for up to 30 years. Each year your AGI grows by the raise you enter. When a payment does not cover the interest, the unpaid interest is waived, and the principal match is added when less than $50 of principal is paid. Anything left after 360 payments is shown as forgiven. Parent PLUS loans are not eligible for RAP. Your loan servicer has the final numbers.
FAQ
What is the RAP student loan plan?
The Repayment Assistance Plan is the federal income-driven plan created by the 2025 tax and spending law. It opened on July 1, 2026. Payments are 1% to 10% of your AGI, with a $10 monthly minimum and $50 off per dependent.
How is the RAP payment calculated?
Find the RAP rate for your AGI (for example 4% for $40,001 to $50,000), multiply your whole AGI by it, divide by 12 and subtract $50 for each dependent. At $45,000 AGI with no dependents that is $150 a month.
Does my balance grow on RAP?
No, as long as you pay on time. Interest your payment does not cover is waived, and the government adds up to $50 a month toward principal if your payment lowers it by less than that.
When is RAP forgiveness?
Any balance left after 360 qualifying monthly payments (30 years) is forgiven. Under current law, forgiveness after 2025 may be taxable income.
Can Parent PLUS loans use RAP?
No. Parent PLUS loans, and consolidation loans that include them, are not eligible for RAP.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.