Short answer. RAP sets your payment at 1% to 10% of your adjusted gross income, divided by 12, minus $50 for each dependent, and never less than $10 a month. It doesn't charge interest your on-time payment doesn't cover, and it can add up to $50 toward principal. Compare it with the plans your loans qualify for on monthly payment, total paid, time to payoff or discharge, PSLF credit and tax on any discharge, using StudentAid.gov's Repayment Calculator.
How RAP works
- Payment. 1% to 10% of AGI, by income bracket, divided by 12, then $50 less for each dependent on your federal return, with a $10 minimum (StudentAid.gov). The RAP page on studentaid.gov describes the brackets rising one point per $10,000 of AGI.
- Interest. If your full, on-time payment is smaller than that month's interest, the unpaid part is covered rather than added to your balance.
- Principal. If a full, on-time payment cuts your principal by less than $50, a matching payment brings the cut up to $50.
- Term. Any remaining balance is discharged after 360 qualifying payments (30 years). StudentAid.gov says discharges on or after January 1, 2026 are subject to federal tax; state rules vary.
- PSLF. RAP payments can count toward Public Service Loan Forgiveness after 10 years, if you otherwise qualify.
- Married borrowers. Filing jointly uses combined income, with a reduction if your spouse also has federal loans. Filing separately uses only your income.
Which loans can use it
StudentAid.gov says RAP is open to most Direct Loans, whenever they were made. If all your loans were made on or after July 1, 2026, RAP is the only income-driven plan. Loans made to parents, including Parent PLUS, are never eligible, even if consolidated.
What to compare it with
- 10-year Standard plan: a fixed payment for loans made before July 1, 2026.
- Tiered Standard plan: the fixed plan for loans made on or after July 1, 2026, with a term set by balance. The SAVE update page says its payments don't count toward PSLF.
- Income-Based Repayment (IBR): for most loans made before July 1, 2026. StudentAid.gov lists 15% of discretionary income (10% for new borrowers) over 25 years (20 for new borrowers).
- PAYE and ICR: StudentAid.gov says both end no later than July 1, 2028.
If you were on SAVE
StudentAid.gov says a court order ended SAVE in March 2026. You have 90 days from your servicer's notice to choose a plan; if you don't, you're placed in the Standard plan, or Tiered Standard for loans made on or after July 1, 2026, and payments may be higher.
How to compare, step by step
- Gather: your latest AGI, the number of dependents you claim, your loan types and balances, interest rates, tax filing status and your spouse's loans if any.
- Run the numbers in the Repayment Calculator. Log in to pull your loans automatically, and import tax information if you can.
- Line up the same five things for each plan: monthly payment now, total you'd pay, when you'd finish or get a discharge, whether payments count for PSLF, and any discharge that might be taxed.
- Test changes. Try a higher income, a new dependent or a change in filing status, since RAP payments move with income.
- Ask your servicer anything the calculator can't answer, such as how a switch affects your payment count. Apply through StudentAid.gov/idr.
Example: one borrower's first month (hypothetical)
AGI $45,000, one dependent, $30,000 in Direct Loans at 6.5%.
- RAP: 4% of $45,000 is $1,800 a year, or $150 a month, minus $50 for the dependent = $100 a month.
- That month's interest is about $162.50. The payment covers $100 of it; the other $62.50 isn't charged. Because principal didn't drop, a $50 matching payment reduces the balance by $50.
- 10-year Standard: about $340.64 a month.
- Tiered Standard (only for loans made on or after July 1, 2026): 15 years for this balance, about $261.33 a month.
A lower payment today isn't the whole story: the total paid, the finish date and PSLF can point another way. Numbers are made up; use your own in the calculator.
Sources
- StudentAid.gov: Top FAQs about IDR plans (Aug. 2026)
- Edfinancial (a Federal Student Aid servicer on studentaid.gov): Repayment Assistance Plan
- StudentAid.gov: SAVE plan update (Oct. 2026)
- StudentAid.gov: Repayment Calculator (Aug. 2026)
Common questions
Can Parent PLUS loans go on RAP?
No. StudentAid.gov says loans made for parents, including Direct PLUS Loans for parents, are never eligible for RAP, even if consolidated.
Do RAP payments count toward PSLF?
The RAP page on studentaid.gov says you may be eligible for forgiveness after 10 years if you're pursuing PSLF. Tiered Standard payments don't count toward PSLF.
Is a RAP discharge taxed?
StudentAid.gov says federal taxes apply to IDR discharges on or after January 1, 2026, and state rules vary.
How is RAP figured if I'm married?
Filing jointly uses combined income, and the payment is reduced if your spouse also has federal student loans. Filing separately uses only your income and the dependents you claim.
I was on SAVE. What's my deadline?
StudentAid.gov says you have 90 days from your servicer's notice to choose a new plan. If you don't choose, you're placed in a fixed plan and payments may be higher.
Related guides
- Side income: how to set aside money for taxes on gig work
- 2027 Marketplace health insurance: estimate your cost before you pick a plan
- How to ask your credit card company for a hardship plan
This guide is general information, checked November 2026 against the official pages listed in Sources. It is not financial, legal or tax advice, and it doesn't recommend any plan or product. The lender, servicer or agency decides the terms.