Quick answer. Under the Repayment Assistance Plan (RAP), available since July 1, 2026, the monthly payment is 1% to 10% of adjusted gross income divided by 12, minus $50 per dependent, with a $10 minimum. At $45,000 of AGI it is $150.00 a month with no dependents and $50.00 with two. The fixed plans depend on your balance and rate instead. Compare all three below.
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The RAP formula, step by step
The formula below is the one printed on the StudentAid.gov income-driven repayment request form and in StudentAid.gov's IDR FAQs. First find the yearly base payment from your adjusted gross income (AGI):
| AGI | Yearly base payment |
|---|---|
| Up to $10,000 | $120 a year (flat) |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% of AGI |
| $30,001 to $40,000 | 3% of AGI |
| $40,001 to $50,000 | 4% of AGI |
| $50,001 to $60,000 | 5% of AGI |
| $60,001 to $70,000 | 6% of AGI |
| $70,001 to $80,000 | 7% of AGI |
| $80,001 to $90,000 | 8% of AGI |
| $90,001 to $100,000 | 9% of AGI |
| More than $100,000 | 10% of AGI |
- Divide the yearly amount by 12.
- Take off $50 for each dependent you claim on your federal tax return.
- If the result is under $10, the payment is $10.
Interest and principal help. After a full, on-time RAP payment, interest the payment didn't cover is not charged to you, and if the payment lowered your principal by less than $50, the Department adds a matching payment so principal drops by $50 (never more than the amount you paid). The result box shows this for the first month using your rate. Forgiveness: any balance left after 360 qualifying monthly payments (at least 30 years) is discharged, and the discharged amount may be taxable (StudentAid.gov form). Public Service Loan Forgiveness still works on the 10-year track, and on-time RAP payments count toward it (Department fact sheet).
The fixed plans in the comparison
- Standard (10 years): fixed payments that pay the loan off in 10 years. Open to loans disbursed before July 1, 2026.
- Tiered Standard: fixed payments over 10 years for balances under $25,000, 15 years for $25,000 to $49,999, 20 years for $50,000 to $99,999 and 25 years for $100,000 or more, with a $50 minimum (Department fact sheet, StudentAid.gov SAVE FAQs). It is the only fixed plan for loans disbursed on or after July 1, 2026. Whether it is open to your older loans depends on your loans, so check with your servicer. Payments under Tiered Standard don't count toward PSLF.
The calculator uses one average rate and today's balance, so a servicer's figure will differ a little. Fixed-plan payments are the standard loan payment formula. The Standard plan for consolidation loans can run 10 to 30 years, which isn't modeled.
Dates that matter
- July 1, 2026: RAP and Tiered Standard open. New loans from this date can use only those two plans (StudentAid.gov).
- SAVE borrowers: 90 days from your servicer's notice (notices began July 1, 2026 and should reach everyone by the end of 2026), then a final 30-day notice. Emails from Federal Student Aid don't start the clock; the servicer's notice does (StudentAid.gov, ed.gov).
- No later than July 1, 2028: PAYE and ICR are retired. Borrowers in phased-out plans have until July 1, 2028 to choose (StudentAid.gov, ed.gov fact sheet).
- IBR: still listed for borrowers with no loans disbursed on or after July 1, 2026 (StudentAid.gov form).
Sources
- StudentAid.gov: Income-Driven Repayment Plan Request (form, OMB 1845-0102)
- StudentAid.gov: Top FAQs About Income-Driven Repayment Plans (August 2026)
- StudentAid.gov: SAVE Plan Borrowers, FAQs About Choosing a Different Repayment Plan (October 2026)
- StudentAid.gov: Compare Repayment Plans With Our Repayment Calculator (August 2026)
- Edfinancial (a Federal Student Aid servicer on studentaid.gov): Repayment Assistance Plan
- U.S. Department of Education: Fact Sheet, Simplifying Student Loan Repayment
- U.S. Department of Education: Next Steps for Borrowers Enrolled in the SAVE Plan
- U.S. Department of Education: RISE final rule fact sheet (April 30, 2026)
All sources opened and checked November 2026.
An organizer, not advice. This is general information checked November 2026 against the Department of Education sources above. It is not financial, tax or legal advice, and it does not decide what you qualify for: your loan servicer, your school and StudentAid.gov do. Before you switch plans, compare with the Loan Simulator on StudentAid.gov, which uses your actual loans, and confirm with your servicer. The calculator runs in your browser, and nothing you enter is sent or saved. MCC Solutions is not affiliated with the Department of Education.
Common questions
When did the Repayment Assistance Plan start?
The Department of Education says borrowers could apply for RAP on StudentAid.gov beginning July 1, 2026. RAP is open to Direct Loans disbursed at any time, but not to Parent PLUS loans or to a Direct Consolidation Loan that repaid a Parent PLUS loan.
How is the RAP payment worked out?
Take your adjusted gross income and find its bracket: up to $10,000 the yearly amount is $120; above that it is 1% of AGI, one more point for each $10,000 step, up to 10% of AGI above $100,000. Divide by 12, take off $50 for each dependent you claim on your federal tax return, and the payment never goes below $10 a month. At $45,000 with no dependents that is 4% of AGI, or $150.00 a month.
I was on SAVE. What happens now?
StudentAid.gov says a court order ended the SAVE plan in March 2026. Servicers began sending notices on July 1, 2026, and each borrower has 90 days from their own notice to choose another plan, with a final 30-day notice after that. A borrower who doesn't choose is placed on the Standard plan, or on the Tiered Standard plan if they have a loan disbursed on or after July 1, 2026 that has entered repayment.
Which plans are closing?
StudentAid.gov says the PAYE and ICR plans will be retired no later than July 1, 2028, and the Department's fact sheet says eligible borrowers in phased-out plans have until July 1, 2028 to choose a new plan. For loans disbursed on or after July 1, 2026, the only plans are RAP and the Tiered Standard plan.
Why doesn't the calculator show IBR, PAYE or ICR?
Those plans use discretionary income, which depends on the federal poverty guideline for your family size, and IBR caps the payment at an amount set when you entered repayment. We left them out rather than estimate them. The Loan Simulator on StudentAid.gov shows them with your actual loans.
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