RAP, the Repayment Assistance Plan, is the new federal income-driven student loan repayment plan that launches July 1, 2026. It sets your monthly payment at 1% to 10% of your income, guarantees your balance shrinks each month, and forgives any remaining debt after 30 years. For most people who borrow federal student loans on or after July 1, 2026, RAP is one of just two repayment choices.
If you are borrowing for college now, RAP will likely shape your payments for decades, so it is worth understanding before you sign. The good news: the payment math is simpler than the old plans, and there are built-in protections. Here is how it works, who qualifies, and how to enroll.
What is the Repayment Assistance Plan (RAP)?
RAP is a new income-driven repayment plan, meaning your monthly bill is based on what you earn rather than what you owe. Created by the 2025 federal law (OBBBA), it replaces the older income-driven plans for new borrowers and starts July 1, 2026. New federal borrowers will generally choose between RAP and a new fixed "standard" plan.
For the big picture of how borrowing changed this year, see our complete guide to student loans in 2026 and what new borrowers need to know about repayment in 2026.
How are RAP payments calculated?
Your RAP payment is a percentage of your adjusted gross income, on a sliding scale from 1% to 10%, with a minimum of $10 a month. The more you earn, the higher the percentage; lower earners pay a smaller share. If your income is under $10,000 a year, you pay a flat $10 a month. RAP also subtracts $50 from your payment for each dependent, which helps families.
A few specifics worth knowing:
- The percentage rises gradually as income rises, so a raise does not cause a sudden jump.
- The minimum monthly payment is $10, no matter how low your income.
- The $50-per-dependent reduction can meaningfully lower payments for parents.
To see how this compares with the other income-driven options that still exist for some borrowers, read income-driven repayment plans compared.
Does RAP protect you from growing interest?
Yes, and this is one of RAP's best features. RAP guarantees your loan balance goes down by at least $50 every month. If your calculated payment would not reduce the principal by that much, the government covers the difference, and it also waives unpaid interest so your balance does not balloon. This prevents the trap many borrowers hit, where low payments never touch the principal and the debt grows.
In plain terms: under RAP, your balance should shrink steadily, not snowball. That is a real change from how interest worked on some older plans.
When are loans forgiven under RAP?
Any balance left after 30 years of qualifying payments is forgiven. That 30-year timeline (360 payments) applies whether your loans are for undergraduate or graduate school. One important caveat: under current rules, the forgiven amount may be taxed as income in the year it is forgiven, so plan for a possible tax bill far down the road.
Thirty years is longer than some older plans offered, so RAP lowers your monthly payment but can stretch repayment out. Note that forgiveness rules are shifting; our explainer on how the Education Department restricts forgiveness credits under RAP covers the details.
Who is eligible for RAP?
RAP is for borrowers with federal Direct loans, and it is the main income-driven option for those who borrow on or after July 1, 2026. Parent PLUS loans are not eligible for RAP. However, parents who took out a Parent PLUS loan before July 1, 2026 may be able to reach RAP and other plans by consolidating into a Direct Consolidation Loan first, but the timing is strict.
Key eligibility points:
- New federal student-loan borrowers from July 1, 2026 onward choose between RAP and the new standard plan.
- Parent PLUS borrowers should read the June 30 consolidation deadline that protects your repayment options before that date passes.
Existing borrowers with no new loans can usually stay on their current plan or switch; the transition window runs into 2028.
How do you enroll in RAP?
You enroll through the official site, studentaid.gov, where RAP is expected to become available on July 1, 2026. You will need to authorize the Department of Education to pull your income and dependent information from the IRS, which it uses to set your payment and recalculate it each year based on your tax return. Watch the official Federal Student Aid updates for the exact enrollment date and steps.
A simple sequence once it opens:
- Log in at studentaid.gov with your account.
- Choose the Repayment Assistance Plan and authorize IRS data sharing.
- Confirm your dependents so the $50-per-dependent reduction applies.
- Review your calculated payment, then recertify each year when your tax info updates.
How is RAP different from the old SAVE plan?
RAP replaces SAVE, which has ended, and the two work differently. SAVE based payments on income above a protected amount and offered faster forgiveness for some borrowers; RAP uses a flat 1%-to-10%-of-income scale and a 30-year forgiveness timeline, with strong protection against growing balances. If you were on SAVE, you cannot stay there.
For what to do if you were affected, read the SAVE plan is ending: what families need to do now, and compare RAP with the other new option in the new tiered standard repayment plan.
Your next step
RAP will be the default income-driven plan for a generation of borrowers, so it pays to understand it before you borrow: payments of 1% to 10% of income, a guaranteed shrinking balance, and forgiveness after 30 years. Borrow the minimum you need, plan to enroll at studentaid.gov once RAP opens, and read our complete 2026 student loan guide for the full picture. When you're ready to figure out how much to borrow in the first place, create your free CollegeLens plan.
You're doing the hard, smart work of understanding repayment before you sign. That's exactly how families avoid surprises later.
-- Sravani at CollegeLens