Repayment Assistance Plan (RAP) Calculator
The Repayment Assistance Plan (RAP) is an income-based repayment plan for federal Direct Loans, created by Pub. L. 119-21 (the 2025 reconciliation act) and available beginning July 1, 2026. The base payment for a year is $120 if your adjusted gross income (AGI) is $10,000 or less, and otherwise 1 percent to 10 percent of your whole AGI by band, reaching 10 percent above $100,000. Your monthly payment is one-twelfth of that base, minus $50 a month ($600 a year per dependent), and never less than $10. If an on-time payment does not cover the interest, the unpaid interest is not charged, and if an on-time payment reduces principal by less than $50 the government adds a matching reduction of up to $50. The balance is cancelled after 360 qualifying monthly payments (over at least 30 years; some earlier payments under other plans can count). Use the calculator below for an estimate.
Maintained by Archie Chang · Rules checked against Pub. L. 119-21 and the Department of Education final rule on October 28, 2026 · Methodology & sources
Your income and loans
Enter only loans RAP can cover (Direct Loans; Parent PLUS loans are not eligible). Married borrowers who file separately use only their own AGI, their own loans and the dependents they claim.
Your estimated RAP payment
- Estimated monthly RAP payment
- $250.00
- AGI band
- $60,000: 5 percent of your whole AGI
- Base payment per year, then divided by 12
- $3,000.00 / 12 = $250.00
- Dependent reduction (0 × $50)
- −$0.00
- Interest accrued in month one
- $216.67
- Interest benefit
- Not needed: your payment covers the interest
- Principal paid by your payment
- $33.33
- Principal match (up to $50)
- $16.67
- Estimated net principal reduction in month one
- $50.00
Year-one summary (12 months, same payment each month)
- You pay
- $3,000.00
- Interest accrued
- $2,582.13
- Unpaid interest not charged
- $0.00
- Principal match
- $182.13
- Balance at start
- $40,000.00
- Balance after 12 months
- $39,400.00
Estimate based on the stated formula, not a servicer quote. It assumes your AGI, dependents and rate stay the same for the year, charges one twelfth of the annual rate each month, and ignores fees, deferment, forbearance and late payments. It does not model interest capitalization (34 CFR 685.209(j)(1) and 685.202(b)). The match and the interest benefit require an on-time payment. This calculator does not project forgiveness after 360 qualifying payments.
The RAP payment formula
The Department of Education’s regulation spells out the monthly payment:
“For the Repayment Assistance Plan, the borrower's applicable monthly payment is an amount equal to-- (i) the borrower's applicable base payment, divided by 12; minus (ii) $50 for each dependent of the borrower.”
The base payment comes from your AGI. The statute and the regulation use the same bands, printed here word for word:
“Base payment, under the Repayment Assistance Plan, means the amount of the applicable base payment for a borrower with an adjusted gross income-- (i) Not more than $10,000, is $120; (ii) More than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income; (iii) More than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income; (iv) More than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income; (v) More than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income; (vi) More than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income; (vii) More than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income; (viii) More than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income; (ix) More than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income; (x) More than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and (xi) More than $100,000, is 10 percent of such adjusted gross income.”
| Adjusted gross income | Base payment per year | Base per month (no dependents) |
|---|---|---|
| Not more than $10,000 | $120 | At $10,000: $10.00 |
| More than $10,000 and not more than $20,000 | 1 percent of such adjusted gross income | At $20,000: $16.67 |
| More than $20,000 and not more than $30,000 | 2 percent of such adjusted gross income | At $30,000: $50.00 |
| More than $30,000 and not more than $40,000 | 3 percent of such adjusted gross income | At $40,000: $100.00 |
| More than $40,000 and not more than $50,000 | 4 percent of such adjusted gross income | At $50,000: $166.67 |
| More than $50,000 and not more than $60,000 | 5 percent of such adjusted gross income | At $60,000: $250.00 |
| More than $60,000 and not more than $70,000 | 6 percent of such adjusted gross income | At $70,000: $350.00 |
| More than $70,000 and not more than $80,000 | 7 percent of such adjusted gross income | At $80,000: $466.67 |
| More than $80,000 and not more than $90,000 | 8 percent of such adjusted gross income | At $90,000: $600.00 |
| More than $90,000 and not more than $100,000 | 9 percent of such adjusted gross income | At $100,000: $750.00 |
| More than $100,000 | 10 percent of such adjusted gross income | At $100,001: $833.34 |
Two things follow from the wording. First, the percentage applies to the whole AGI, not to the slice of income inside the band: the base payment is “1 percent of such adjusted gross income”, so it is not marginal. At $20,000 the base is 1 percent, $200 a year or $16.67 a month. At $20,001 it is 2 percent, $400.02 a year or $33.34 a month, because the payment steps up the moment your AGI crosses a band line. The Department of Education’s final rule uses the same arithmetic for a married couple with a combined $55,000 of income, 5 percent of the whole $55,000:
“The couple in the example above with a $55,000 income would instead owe $229 per month on their combined Federal student loans, not $458.”
Second, the flat $120 a year for AGI of $10,000 or less is $10.00 a month, which equals the minimum payment. The statute and the regulation set that minimum:
“In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10.”
“In cases where the borrower's monthly payment amount calculated under paragraph (f)(5) of this section is less than $10, the monthly payment is $10 except that the final payment may be less than $10.”
Your AGI is the AGI on your most recent tax return. If it is unavailable or does not reasonably reflect your current income, the statute has you give the Secretary other documentation of income. A borrower who is required to provide information and does not is charged what the borrower would have paid on each loan under a 10-year standard plan, until the information is provided.
You can also pay more than the RAP amount in any month. The regulation says what that does to your due date:
“When the borrower elects to make a payment in excess of the amount due, the next payment due date is automatically advanced.”
The same paragraph says a borrower is not eligible to receive the matching principal payment for periods without a due date, and lets you opt out of advancing the due date. If you want the match in a month, ask your servicer how to opt out.
Dependents
Each dependent lowers the monthly payment by $50, after the base is divided by 12. The regulation defines who counts:
“Dependent, for the purposes of the Repayment Assistance Plan, means an individual who qualifies as a dependent under section 152 of the Internal Revenue Code of 1986, as amended, and who were claimed on the borrower's Federal income tax return. For a borrower who filed a Federal tax return as married filing separately, “dependent” shall only include the dependents claimed on the borrower's return.”
Example: AGI of $60,000 is 5 percent, $3,000 a year, $250 a month. With two dependents the payment is $250 − 2 × $50 = $150.00. With five dependents the arithmetic gives $250 − $250 = $0, so the $10 minimum applies and the payment is $10.00. The reduction cannot take the payment below $10.
The interest benefit and the principal match
RAP applies your payment to interest first, then fees, then principal. The statute says:
“The Secretary shall apply the borrower's applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan.”
Interest benefit. When the payment does not cover the month’s interest, the rest is not charged:
“With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower.”
The regulation repeats it for all RAP loans:
“Under the Repayment Assistance Plan, during all periods of repayment on all loans being repaid under the Repayment Assistance Plan, the Secretary does not charge the borrower's account for any accrued interest that is not covered by the borrower's on-time payment of the amount due for that month.”
Principal match. When the payment reduces principal by less than $50, the Secretary reduces it further:
“Matching Principal Payment under the Repayment Assistance Plan. When the borrower is not in a period of deferment under Sec. 685.204 or forbearance under Sec. 685.205, for each month the borrower makes an on-time monthly payment as applied in paragraph (f)(5)(i) of this section and the outstanding principal balance is reduced by less than $50, the Secretary reduces such total outstanding principal of the borrower by an amount that is equal to-- (A) the lesser of-- (1) $50; or (2) the monthly payment made; minus (B) the amount of the monthly payment that is applied to such total outstanding principal balance.”
The calculator does this month by month in cents. Three worked examples with real arithmetic:
- Payment below the interest. $50,000 at 7 percent, single, AGI $30,000. The base is 2 percent × $30,000 = $600 a year, $50 a month. Interest for the month is $50,000 × 7% ÷ 12 = $291.67. The $50.00 payment all goes to interest, so $241.67 of interest is not charged and principal paid is $0.00. The match is the lesser of $50 or the $50.00 payment, minus $0 applied to principal, which is $50.00. The balance falls by $50.00 a month, and the year-one summary shows $600.00 of matches and $2,880.76 of interest not charged over twelve months.
- Payment slightly above the interest. $20,000 at 6 percent, AGI $50,000, one dependent. Base 4 percent × $50,000 = $2,000 a year, $166.67 a month, minus $50 = $116.67. Interest is $20,000 × 6% ÷ 12 = $100.00, so the payment pays all of it and $16.67 of principal. That is under $50, so the match is $50 − $16.67 = $33.33 and principal falls by $50.00.
- Payment well above the interest. $20,000 at 6 percent, AGI $60,000, no dependents: a $250.00 payment, $100.00 of interest and $150.00 of principal. Principal fell by more than $50, so there is no match and no interest to waive.
The match and the interest benefit apply to an on-time payment. The statute also says principal not paid by the payment is deferred. This calculator is an estimate based on the stated formula: it charges one twelfth of your annual rate each month, keeps the same payment for twelve months, and does not model fees, deferment or forbearance.
Married borrowers: joint and separate returns
The regulation says whose income counts:
“For an unmarried borrower, a married borrower filing a separate Federal income tax return, or a married borrower filing a joint Federal tax return who certifies that the borrower is currently separated from the borrower's spouse or is currently unable to reasonably access the spouse's income, only the borrower's income is used in the calculation.”
“For a married borrower filing a joint Federal income tax return, except as provided in paragraph (e)(1)(i)(A) of this section, the combined income of the borrower and spouse is used in the calculation.”
The Department adds, in the preamble to the same rule:
“In cases where only one tax filer has a student loan in a married household that files a joint tax return, payments under the Repayment Assistance Plan are calculated on the household's combined adjusted gross income.”
When both spouses have eligible loans on a joint return, the regulation prorates one payment by each person’s share of the combined balance:
“The borrower's payment is adjusted by-- (1) Dividing the outstanding principal and interest balance of the borrower's eligible loans by the couple's combined outstanding principal and interest balance on eligible loans; and (2) Multiplying the borrower's payment amount as calculated in accordance with paragraph (f)(5) of this section by the percentage determined under paragraph (g)(3)(i) of this section.”
The Department’s example is two borrowers with $27,500 of AGI each and $20,000 of loans each. Combined AGI is $55,000, 5 percent, so $229.17 a month in total, and each borrower owes about $114.59. Filing separately, each would be in the 2 percent band and owe $45.83 on their own AGI, but the Department notes separate returns can raise taxes. In the calculator, choose married filing jointly to enter your spouse’s AGI and loans; a separate return ignores them.
Who can use RAP and when
The plan starts on July 1, 2026: the statute says “beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan”, known as the Repayment Assistance Plan. The regulation sets who can use it:
“Any Direct Loan borrower may repay under the Repayment Assistance Plan if the borrower has loans eligible for repayment under the plan.”
“The following loans, including defaulted loans, are eligible to be repaid under the Repayment Assistance Plan: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans that are not excepted consolidation loans.”
Parent PLUS. The statute defines an “excepted loan” as a Federal Direct PLUS Loan made on behalf of a dependent student (a Parent PLUS loan), or certain Direct Consolidation Loans that repaid one. The Department says:
“Consistent with Section 455(d) of the HEA, borrowers with an excepted PLUS loan or excepted consolidation loan are not eligible for the Repayment Assistance Plan, irrespective of whenever they obtained their excepted PLUS loan or excepted consolidation loan.”
All loans in one plan, except excepted loans. The statute puts a borrower’s loans in one plan, with this exception:
“A borrower is required to pay each outstanding loan of the borrower made under this part under the same selected repayment plan, except that a borrower who selects the Repayment Assistance Plan and also has an excepted loan that is not eligible for repayment under such Repayment Assistance Plan shall repay the excepted loan separately from other loans under this part obtained by the borrower.”
The Parent PLUS loan itself cannot be repaid under RAP; a borrower who also has eligible loans of their own can repay those under RAP and repays the excepted loan separately.
New loans. For a borrower with a loan made on or after July 1, 2026, the Secretary offers two plans: a standard plan or RAP. The standard plan has a fixed payment over a period set by total outstanding principal when the borrower enters repayment: 10 years for less than $25,000, 15 years for $25,000 to under $50,000, 20 years for $50,000 to under $100,000, and 25 years for $100,000 or more. A borrower who does not choose gets the standard plan, and can switch between it and RAP at any time.
Forgiveness. The statute cancels the balance after 360 qualifying monthly payments:
“The Secretary shall cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower-- (i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection; (ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and (iii) who has made 360 qualifying monthly payments on such loan.”
“In the case of a borrower repaying under the Repayment Assistance Plan, the borrower receives forgiveness of the remaining balance of the borrower's loans after the borrower has satisfied 360 monthly payments or the equivalent in accordance with paragraph (k)(8) of this section over a period of at least 30 years.”
Some earlier payments can count toward the 360. Under section 455(q)(1)(F) of the Higher Education Act (clauses (iii) to (vii)) and 34 CFR 685.209(k)(8)(i)(C), qualifying payments include certain payments under IBR, under ICR before July 1, 2028, and under plans that pay at least the 10-year standard amount, plus certain deferment and economic hardship months. This calculator does not count them.
The Department’s final rule says on taxes:
“The provisions of the American Rescue Plan Act of 2021 modified the Federal tax treatment of certain student loan discharges through December 31, 2025, by excluding these discharges from gross income for Federal income tax purposes. The Department does not have the authority to change income tax laws relating to the amount of any loan that is forgiven. The Internal Revenue Code (Title 26 of the U.S.C.) governs what is considered taxable income. A borrower may need to consider any tax implications of their choice of repayment plan and potential loan forgiveness and any resulting taxes.”
That passage does not say whether taxes apply to a forgiven RAP balance, and neither does Pub. L. 119-21. Treat the tax treatment as unconfirmed and ask a tax professional. The calculator does not project 30-year forgiveness amounts.
The plan’s eligibility is reviewed every year: the statute applies the Secretary’s procedures for annually determining your eligibility and verifying income. To apply or change plans, use Federal Student Aid’s official repayment plans page. The rules summarized above are quoted from Pub. L. 119-21 and the Department’s May 1, 2026 final rule; the application steps on studentaid.gov are not summarized here.
RAP compared with the old plans
These comparisons use only the Department’s regulation text. For a plain fixed-payment estimate of the same loan, with no income-based plan, use the student loan calculator.
| Plan | Payment base (34 CFR 685.209) | Forgiveness after |
|---|---|---|
| RAP | A percent of the whole AGI by band, divided by 12, minus $50 per dependent, minimum $10 | 360 monthly payments, at least 30 years |
| IBR, not a new borrower | 15 percent of AGI that exceeds 150 percent of the poverty guideline | 300 payments, at least 25 years (IBR not a new borrower) |
| IBR, new borrower | 10 percent of AGI that exceeds 150 percent of the poverty guideline | 240 payments, at least 20 years |
| PAYE | 10 percent of AGI that exceeds 150 percent of the poverty guideline | 240 payments, at least 20 years |
The difference in design is that RAP does not subtract a poverty-line amount before applying a percentage; it applies the band percent to AGI itself, and it adds the interest benefit and principal match. The regulation also limits the older plans: only Direct Loans made before July 1, 2026, may be repaid under PAYE, IBR and ICR. This page does not estimate IBR or PAYE payments, so it makes no claim about which plan costs you less; a lower payment is not always cheaper over the life of the loan. Compare plans with Federal Student Aid’s Loan Simulator.
What happens to SAVE borrowers
The statements below are the Department of Education’s, as of the final rule published in the Federal Register on May 1, 2026. Court or Department actions after that date are not reflected here, so check your account on studentaid.gov.
The statute sets the deadline for borrowers in income-contingent plans:
“Beginning on July 1, 2028, a borrower described in paragraph (1) shall begin repaying the covered income contingent loans of the borrower in accordance with the repayment plan selected under paragraph (1), unless the borrower chooses to begin repaying in accordance with the repayment plan selected under paragraph (1) before such date.”
The Department’s final rule applies it to SAVE (REPAYE), PAYE and ICR:
“Accordingly, any borrowers who are repaying Direct Loans under REPAYE, PAYE or ICR, or who are in an administrative forbearance (as defined in Sec. 685.205(b)) associated with PAYE, or ICR, must elect to repay those Direct Loans under the Repayment Assistance Plan, IBR, or the standard, graduated or extended repayment plans beginning July 1, 2028.”
And for a borrower who does not choose a plan:
“In the case of a borrower who does not select a repayment plan under paragraph (c)(7)(i) of this section by July 1, 2028, the Secretary shall require the loans to be repaid under the following repayment plans: (1) the Repayment Assistance Plan under paragraph (a)(5) of this section, for the Direct Loans eligible to be repaid under such repayment plan; or (2) the IBR plan under paragraph (a)(2), for the Direct Loans that are ineligible to be repaid under the Repayment Assistance Plan.”
On SAVE itself, the Department says the plan was held unlawful, and describes the Missouri settlement:
“Because the SAVE/REPAYE plan was enjoined in its entirety by the 8th Circuit on February 18, 2025, the Department committed not to implement any of the SAVE Plan Final Rule provisions, except for periods of deferments and forbearances that are eligible for IDR plans, in the Missouri settlement entered into on October 9, 2025.”
The Department says it placed borrowers enrolled in REPAYE (SAVE) in a forbearance in August 2024, and that Congress did not allow it to grandfather borrowers into the existing ICR plans beyond July 1, 2028. If you are a SAVE borrower, the sourced deadline is July 1, 2028, and RAP is one of the plans you can choose before then.
Frequently asked questions about RAP
How is my RAP payment calculated?
Your AGI from your most recent tax return sets a base payment: $120 a year if your AGI is $10,000 or less, otherwise 1 percent of your AGI (more than $10,000 up to $20,000), 2 percent (up to $30,000) and so on, up to 10 percent of your AGI when it is more than $100,000. The base is divided by 12, then $50 is subtracted for each dependent, and the payment is never less than $10. Example: $60,000 AGI is 5 percent, $3,000 a year, $250 a month.
Is the percentage applied to all my income or only the part in each band?
All of it. The statute says the base payment for a borrower in a band is that percent of “such adjusted gross income”, meaning the whole AGI, so it is not marginal. At $20,000 the payment is 1 percent, $1.00 a month; at $20,001 it is 2 percent, $1.00 a month. The Department of Education’s own example agrees: a $55,000 household income owes $229 a month.
What are the RAP interest benefit and principal match?
If you make an on-time payment and it does not cover the interest that accrued for the month, the unpaid interest is not charged to you. If an on-time payment cuts your principal by less than $50, the Secretary reduces your principal by the lesser of $50 or your payment, minus the principal your payment already paid. Example: on $50,000 at 7 percent with a $50.00 payment, interest is $291.67, $241.67 is not charged, and the match is $50.00.
Who can use RAP, and are Parent PLUS loans eligible?
Any Direct Loan borrower with eligible loans can repay under RAP from July 1, 2026. Eligible loans are Direct Subsidized, Direct Unsubsidized, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans that are not excepted consolidation loans, including defaulted loans. A Direct PLUS Loan made on behalf of a dependent student (a Parent PLUS loan) is an excepted loan, and the Department says borrowers with an excepted PLUS loan or excepted consolidation loan are not eligible for RAP. The Parent PLUS loan itself cannot be repaid under RAP; a borrower who also has eligible loans of their own can repay those under RAP and repays the excepted loan separately.
How are married borrowers treated?
If you file jointly, your payment is based on the combined AGI of you and your spouse. If you file separately, only your own AGI is used, and only the dependents you claim on your return count. When both spouses have eligible loans on a joint return, the Department prorates one payment by each person’s share of the combined balance. In its example, two borrowers with $27,500 AGI each and $20,000 of loans each owe $229.17 combined, about $114.59 each. If you file jointly but certify that you are currently separated from your spouse or currently unable to reasonably access your spouse’s income, only your own income is used.
Is RAP forgiveness taxable?
Pub. L. 119-21 and the Department’s May 1, 2026 final rule do not say whether taxes apply to a forgiven RAP balance. The Department of Education’s final rule says the American Rescue Plan exclusion applied to discharges through December 31, 2025, that the Department cannot change income tax laws, and that the Internal Revenue Code governs what is taxable income. Ask a tax professional about the year you expect forgiveness. Forgiveness comes after 360 qualifying monthly payments (at least 30 years), so this calculator does not project it.
What happens to SAVE borrowers?
As of the Department’s May 1, 2026 final rule, the law requires borrowers in income-contingent plans, which the Department’s final rule says includes REPAYE (SAVE), to choose RAP, IBR or another plan before July 1, 2028, and to start repaying under it on July 1, 2028 unless they choose to start earlier. Borrowers who do not choose are placed in RAP for eligible loans and IBR for the rest. The Department also says it placed borrowers enrolled in SAVE in a forbearance in August 2024 and that SAVE is enjoined. Later court or Department actions are not reflected here.