Plan rules depend on loan type, disbursement dates, consolidation history, and borrower-specific facts. Confirm eligibility with Federal Student Aid before applying.
RAP became available July 1, 2026, as part of the federal student-loan repayment changes. The percentage applied to AGI rises by income tier; the exact applicable tier should be confirmed in the official calculator and application. A dependent adjustment may lower the calculated amount, but the minimum payment is $10 per month.
How a RAP payment is calculated
Start with your adjusted gross income (AGI), apply the percentage assigned to your income range, divide by 12, and subtract $50 for each dependent claimed on your federal tax return. If the result is below $10, the monthly payment is adjusted to $10. Use the official calculator for a personalized estimate; do not rely on a generic online formula alone.
A key tradeoff: no Standard-plan payment cap
Federal Student Aid notes that RAP does not cap the payment at the 10-year Standard Plan amount. Some borrowers could therefore owe more each month under RAP than under a fixed repayment plan. Compare the actual monthly payment and total amount paid before selecting it.
Interest and principal features
For borrowers who make full, on-time required payments, RAP can provide an interest subsidy when a payment does not cover the monthly interest. Federal guidance also describes a principal-matching benefit in qualifying circumstances. Review the current official terms to understand how these features apply to your loan and payment history.
How long repayment lasts
RAP has a 30-year repayment period. A remaining balance may be discharged after the required qualifying payment period, but the details and tax treatment can vary and the result is not guaranteed. Borrowers pursuing Public Service Loan Forgiveness should compare RAP with all eligible alternatives and confirm their qualifying employment and payment count.
Who should carefully review eligibility
RAP is generally described for eligible Direct Loans, but Parent PLUS loans and Direct Consolidation Loans that include Parent PLUS are not eligible. Some FFEL or Perkins loans may need to be consolidated into a Direct Consolidation Loan first. Consolidation changes the legal loan and can affect terms, payment history, and other benefits—get a personalized official review first.
RAP base-payment brackets
The base calculation uses the percentage associated with your annual adjusted gross income (AGI). For the rows below, apply the listed percentage to the full AGI amount, divide the result by 12, and then apply the dependent reduction described beneath the table. These are base figures, not a personalized quote.
| Annual AGI range | Base annual calculation |
|---|---|
| $10,000 or less | $120 per year ($10 per month) |
| More than $10,000 up to $20,000 | 1% of AGI |
| More than $20,000 up to $30,000 | 2% of AGI |
| More than $30,000 up to $40,000 | 3% of AGI |
| More than $40,000 up to $50,000 | 4% of AGI |
| More than $50,000 up to $60,000 | 5% of AGI |
| More than $60,000 up to $70,000 | 6% of AGI |
| More than $70,000 up to $80,000 | 7% of AGI |
| More than $80,000 up to $90,000 | 8% of AGI |
| More than $90,000 up to $100,000 | 9% of AGI |
| More than $100,000 | 10% of AGI |
After dividing the base annual amount by 12, RAP reduces the monthly payment by $50 for each dependent claimed on your federal income-tax return, subject to a $10 minimum monthly payment. Filing status matters: married filing jointly generally uses combined income, with a possible adjustment when the spouse also has federal student loans; married filing separately generally uses the borrower's income and dependents claimed on that return. Verify your individual result in official guidance and with your servicer.
Step-by-step: what to do next
- Sign in to StudentAid.gov and review the loan types and disbursement dates shown for every loan.
- Open the official Repayment Calculator and compare RAP with each other plan available to you.
- Review monthly payment, total paid, expected repayment period, interest treatment, and any PSLF or IDR discharge objective.
- Submit the plan application only through StudentAid.gov and keep the confirmation.
- After processing, verify the plan name, payment amount, and first due date with your servicer.
Important cautions
- RAP’s payment formula is based on AGI, not discretionary income.
- A dependent reduction requires dependents claimed on your federal tax return.
- The $10 minimum applies even if the formula would calculate less.
- There is no general cap at the 10-year Standard Plan amount under RAP.
- Eligibility and consolidation questions should be checked against your actual loan types.
Official source and next action
Use the official repayment-plan guidance before acting. Your servicer determines the payment due after processing and can confirm your account-specific status.
Open official Federal Student Aid guidance ↗
This page is educational material, not a determination of your eligibility or payment amount. Official source pages can change; revisit the linked source before relying on a deadline.