RAP Payment, Explained: How It's Calculated

Forgiveness Watch · Published November 3, 2026 · Rules checked October 31, 2026 · 8 min read

The Repayment Assistance Plan (RAP) opened July 1, 2026, and it's now the only income-driven plan for anyone who borrows or consolidates on or after that date. The formula is simpler than the old plans, but it has quirks that can cost or save you real money. Here's exactly how the payment works, with worked examples.

Quick answer

Find your adjusted gross income (AGI) bracket. RAP charges 1% to 10% of your total AGI, one point higher for each $10,000 of income, capped at 10% above $100,000.
Divide the yearly amount by 12, then subtract $50 a month for each dependent.
The payment can't go below $10 a month. If your AGI is $10,000 or less, it's $10.
When you pay on time and in full, ED waives any interest your payment doesn't cover and adds a principal match so your balance drops by up to $50.
Forgiveness comes after 360 qualifying payments (30 years). RAP also counts for PSLF.

The RAP bracket table

RAP uses your whole AGI, the number on your federal tax return. Unlike IBR or PAYE, it doesn't first subtract a poverty-line allowance. The percentage you pay depends on which bracket your AGI falls into:

Your AGI	Yearly payment	Monthly, before dependents
$10,000 or less	$120 flat	$10
$10,001 – $20,000	1% of AGI	$10 – $17 ($10 minimum)
$20,001 – $30,000	2% of AGI	$33 – $50
$30,001 – $40,000	3% of AGI	$75 – $100
$40,001 – $50,000	4% of AGI	$133 – $167
$50,001 – $60,000	5% of AGI	$208 – $250
$60,001 – $70,000	6% of AGI	$300 – $350
$70,001 – $80,000	7% of AGI	$408 – $467
$80,001 – $90,000	8% of AGI	$533 – $600
$90,001 – $100,000	9% of AGI	$675 – $750
Over $100,000	10% of AGI	$834 and up

The percentage applies to your entire AGI, not just the part above each line. That creates small “cliffs” at each $10,000 mark (more on that below). The brackets and the $50 dependent credit are written into the law and are not adjusted for inflation, according to the National Consumer Law Center.

How to calculate your payment, step by step

Find your AGI on your most recent federal tax return. If you're married and file jointly, use your combined AGI. If you file separately, use only your own.
Find your bracket in the table and multiply your AGI by that percentage. (If your AGI is $10,000 or less, your payment is $10 a month. Skip to step 5.)
Divide by 12 to get a monthly amount.
Subtract $50 for each dependent you claim on your tax return.
Apply the $10 floor. If the result is under $10, your payment is $10.
If you're married filing jointly and your spouse also has federal loans, the payment is split according to each spouse's share of the couple's total federal student debt.

Your servicer may round slightly differently, so treat your own math as an estimate. To compare RAP with IBR or PAYE side by side, use our IDR Payment Estimator.

Worked examples

These are simple illustrations of the formula, not real borrowers.

Situation	Math	Monthly RAP payment
Single, AGI $32,000, no dependents	3% × $32,000 = $960 ÷ 12	$80
AGI $58,000, two dependents	5% × $58,000 = $2,900 ÷ 12 = $241.67, minus $100	$141.67
AGI $9,000	Under $10,000, flat minimum	$10
AGI $24,000, three dependents	2% × $24,000 = $480 ÷ 12 = $40, minus $150 = below zero	$10 (floor)
Married filing jointly, combined AGI $120,000, two kids, each spouse owes $30,000	10% × $120,000 = $12,000 ÷ 12 = $1,000, minus $100 = $900, split 50/50	$450 each

Watch the bracket cliffs

Because the percentage applies to all of your AGI, crossing a bracket line by a dollar raises your payment noticeably. At exactly $40,000 of AGI, RAP is 3%: $1,200 a year, or $100 a month. At $40,001 it's 4%: about $1,600 a year, or $133.34 a month. One extra dollar of income costs about $33 a month.

If you're just above a line, lowering your AGI can drop you into the lower bracket. Pre-tax retirement contributions (for example to a traditional 401(k) or 403(b)) and some other pre-tax deductions reduce AGI. Run the numbers before your next recertification.

The interest waiver and the $50 principal match

RAP's best feature is that your balance shouldn't grow when you pay on time. Each month you make a full, on-time payment:

Unpaid interest is waived. If your payment doesn't cover that month's interest, ED waives the rest instead of adding it to your balance.
Principal match. If your payment reduces principal by less than $50, ED adds a matching amount so your principal drops by $50, or by the full amount of your payment if that's less than $50.

Example

You owe $35,000 at 6% interest, so about $175 of interest accrues this month. Your RAP payment is $80. All $80 goes to interest. The remaining $95 of interest is waived. Because none of your payment reached principal, ED's match reduces your principal by $50. Your balance goes down $50 instead of up $95.

Two cautions. First, both benefits depend on paying on time and in full. Second, paying extra can backfire. When an extra payment pushes your next due date forward, you can lose the subsidy for those months. ED's final rule lets borrowers who overpay opt out of advancing their due date, which keeps them eligible. Ask your servicer to apply extra money that way.

Forgiveness, PSLF and credit for past payments

30-year forgiveness: any remaining balance is forgiven after 360 qualifying monthly payments. Under current law that forgiveness is taxable. See the IDR tax bomb.
PSLF: RAP is a qualifying plan. A month counts only if the payment is on time and in full, and it matches certified qualifying employment.
Past IDR payments carry over: payments made under IBR, PAYE, ICR or SAVE count toward RAP's 360.
It doesn't work the other way: RAP payments generally don't count toward IBR, ICR or PAYE forgiveness if you switch back. ED's guidance makes an exception for months when your RAP payment was at least the 10-year Standard amount.
No payment cap: unlike IBR, RAP doesn't cap your payment at the 10-year Standard amount, so high earners can pay more on RAP.

Who is on RAP, and who can choose it

Direct Subsidized, Unsubsidized, Grad PLUS and most Consolidation loans can use RAP. Parent PLUS loans, and consolidation loans that repaid a Parent PLUS loan, cannot.

If any of your federal loans was first disbursed on or after July 1, 2026, including a new Direct Consolidation Loan, ED treats you as a “new borrower.” Once that new loan enters repayment, all of your Direct Loans, including older ones, must be repaid under RAP or the Tiered Standard plan. Tiered Standard payments don't count for PSLF, so public service workers in that position need RAP. If you have only older loans, RAP is optional. Compare it with IBR before you switch in our RAP vs. legacy IDR comparison. Grad students facing this choice should read Grad PLUS is gone.

Never pay for student loan help

RAP enrollment is free at StudentAid.gov/idr. Companies charging to “enter you in the new RAP plan” are selling something you can do yourself in about 10 minutes. Every federal application, from IDR and consolidation to PSLF, discharges and default resolution, is free at StudentAid.gov or through your servicer. Anyone who charges a fee, asks for your FSA ID password, or promises guaranteed forgiveness is a red flag. See how to spot student loan scams.

What to do this week

Pull your latest tax return and run the RAP math above, or use the IDR Payment Estimator.
If you're just over a bracket line, look at whether pre-tax retirement contributions could bring your AGI under it.
Turn on autopay so your payments are on time, which protects the interest waiver and PSLF credit. Check your bill each month for errors.
If you have only pre-July 2026 loans, compare RAP with IBR before switching, since RAP months generally won't count toward IBR later.
If your payment looks wrong, see how to escalate a servicer mistake.

FAQ

How is the RAP payment calculated?

Take your total AGI, multiply it by your bracket percentage (1% for $10,001–$20,000, rising one point per $10,000 to 10% above $100,000), divide by 12, and subtract $50 for each dependent. The minimum is $10 a month, and AGI of $10,000 or less means a $10 payment.

Is there a $0 payment on RAP?

No. The minimum RAP payment is $10 a month. IBR can still produce a $0 payment for low-income borrowers who have only older loans.

Does my spouse's income count on RAP?

If you file jointly, RAP uses your combined AGI, and if your spouse also has federal loans the payment is split by each spouse's share of the debt. If you file separately, only your own AGI and dependents count.

Does RAP waive interest?

Yes. In months when you make a full, on-time payment, any interest your payment doesn't cover is waived, and ED adds a principal match so your balance drops by up to $50.

Does RAP count for PSLF?

Yes. RAP is a PSLF-qualifying plan. The Tiered Standard plan is not.

Sources

Checked October 31, 2026. Rules are changing quickly; when an official notice and this page disagree, the official notice wins.