The Repayment Assistance Plan (RAP) sets your monthly student loan payment from your adjusted gross income: $120 a year up to $10,000, then 1 to 10 percent of AGI. It divides by 12, subtracts $50 per dependent, and never goes below $10. This calculator compares RAP with IBR and the Tiered Standard plan.
RAP monthly payment, first year
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How to Use the RAP Student Loan Calculator
- Enter your federal loan balance, interest rate and AGI. Add the number of dependents you claim for RAP, and your family size if you want the IBR comparison.
- Choose when your loans were made and which IBR version applies. Add a yearly income growth if you expect raises.
- Read the RAP payment, then compare total paid, years and forgiven balance against IBR and the Tiered Standard plan.
| Result | What it means |
|---|---|
| RAP monthly payment | Base payment on AGI, divided by 12, minus $50 per dependent, with a $10 minimum. Reset each year as income changes. |
| IBR monthly payment | A percent of income above 150 percent of the poverty guideline, divided by 12, capped at the 10-year standard payment. |
| Tiered Standard payment | A level payment over 10, 15, 20 or 25 years, set by your balance. Minimum $50. |
| Total paid and years | Everything you pay until the balance is gone or forgiven, from a month-by-month simulation. |
| Lowest total paid | The plan with the smallest total paid. A forgiven balance is not counted as paid. The lowest total is not always the lowest monthly payment. |
| Verdict band | Says which plan pays the least in total here and how its first-year payment compares with RAP. |
What Is the Repayment Assistance Plan (RAP)?
The Repayment Assistance Plan (RAP) is a new income-driven repayment plan for federal Direct Loans. The U.S. Department of Education created it in the final rule published May 1, 2026 (91 FR 23768), effective July 1, 2026. The rule implements Public Law 119-21.
RAP bases your payment on adjusted gross income, not on a poverty-line formula. Two features set it apart: unpaid interest is not charged if you pay on time, and the Department reduces your principal by a match of up to $50 a month. After 360 qualifying payments, the remaining balance is forgiven.
Any Direct Loan borrower with eligible loans may use RAP. Direct PLUS loans made to parents are not eligible. RAP also counts as a qualifying repayment plan for Public Service Loan Forgiveness in the same rule. For a plan to fit your own situation, compare it with the student loan payoff calculator and read student loan forgiveness explained.
How Does the RAP Calculator Work?
The calculator applies the payment rules in 34 CFR 685.209 as revised by the final rule, then simulates your loan month by month.
RAP payment = max($10, base payment / 12 - $50 x dependents), where the base payment is $120 up to $10,000 of AGI, and above that a percent of the whole AGI set by its bracket| Adjusted gross income | RAP base payment per year |
|---|---|
| $10,000 or less | $120 (a flat amount) |
| $10,001 to $20,000 | 1 percent of AGI |
| $20,001 to $30,000 | 2 percent of AGI |
| $30,001 to $40,000 | 3 percent of AGI |
| $40,001 to $50,000 | 4 percent of AGI |
| $50,001 to $60,000 | 5 percent of AGI |
| $60,001 to $70,000 | 6 percent of AGI |
| $70,001 to $80,000 | 7 percent of AGI |
| $80,001 to $90,000 | 8 percent of AGI |
| $90,001 to $100,000 | 9 percent of AGI |
| Over $100,000 | 10 percent of AGI |
The percent applies to your entire AGI, not just the slice in the bracket. That makes the base payment jump a little when AGI crosses $10,000 or another round number. The calculator copies the rule as written.
- Each year, the tool grows your AGI by your growth assumption and recomputes the payment.
- Each month, interest is balance times rate divided by 12. The payment covers interest first, then principal.
- Interest subsidy. If the payment is less than the interest, the unpaid interest is not charged to you.
- Principal match. If less than $50 of principal is paid in a month, the Department cuts principal by the lesser of $50 or your payment, minus the principal your payment already covered.
- Forgiveness. After 360 monthly payments, any remaining balance is forgiven.
RAP Student Loan Example: Three Borrowers
All figures below came from the calculator logic, run in code. Interest is simple monthly interest on principal.
| Borrower | Inputs | RAP result |
|---|---|---|
| Single, mid income | Balance $45,000, 6.5 percent, AGI $48,000, no dependents, flat income | Base 4 percent of AGI = $1,920.00 a year. First-year payment $160.00 a month. Total paid $57,600 over 30.0 years. Interest waived $12,991. Match credited $17,658. |
| Parent, low income | Balance $30,000, 6 percent, AGI $22,000, one dependent | Base 2 percent of AGI = $440.00 a year, or $36.67 a month. Minus $50 is below zero, so the $10 minimum applies. Payment $10.00. Forgiven after 360 payments: $26,400. |
| Single, higher income | Balance $60,000, 7 percent, AGI $120,000, no dependents | Base 10 percent of AGI = $12,000 a year. Payment $1,000.00 a month. Total paid $74,064 over 6.2 years. |
For the first borrower, the Tiered Standard plan would pay $392.00 a month for 15 years and $70,560 in total, and IBR (new borrower, 10 percent) would start at $200.50 a month. The second borrower shows why RAP can be cheap per month and still run for 30 years: a $10 payment does not touch a growing interest bill, yet the subsidy and match keep the balance from growing.
RAP vs IBR vs Tiered Standard
The three plans answer different needs. RAP lowers the payment, IBR ties the payment to income above a poverty line, and Tiered Standard pays the loan off on a fixed schedule.
| Feature | RAP | IBR | Tiered Standard |
|---|---|---|---|
| Payment basis | AGI bracket percent, minus $50 per dependent | 10 or 15 percent of income above 150 percent of poverty guideline | Balance, rate and a fixed term |
| Minimum payment | $10 | $0, or $10 if the formula gives $5 to $10 | $50 |
| Unpaid interest | Not charged if you pay on time | Accrues; first 3 years free on subsidized loans | Paid in full by the schedule |
| Principal help | Match of up to $50 a month | None | None |
| Forgiveness | After 360 payments (30 years) | After 240 or 300 payments (20 or 25 years) | None, the loan is paid off |
| Loans made on or after July 1, 2026 | Eligible | Not eligible under the final rule | Eligible |
| Counts for PSLF | Yes | Yes | The 10-year term only; check your servicer |
Terms for the Tiered Standard plan come from 34 CFR 685.208: 10 years under $25,000, 15 years from $25,000 to $49,999, 20 years from $50,000 to $99,999, and 25 years at $100,000 or more. The tool computes the level payment for that term. The IBR 10 percent, 15 percent and 150 percent figures come from the same rule. I did not model IBR's three-year interest subsidy for subsidized loans, so IBR balances here may be slightly high on subsidized loans.
Factors That Change Your RAP Payment
AGI and the Bracket Edges
Because the percent applies to the whole AGI, $10,000 of AGI gives $120 a year, while $10,001 gives about $100. Crossing a bracket line can change the payment by a small step in either direction.
Dependents
Each dependent claimed on your federal return takes $50 off the monthly payment. For a borrower who files separately, only dependents claimed on that borrower's return count.
Marriage and Filing Status
Married borrowers who file jointly use combined income, and the spouse's eligible loans enter the payment split. Borrowers who file separately use their own income. The rule lets a joint filer who is separated or cannot reach the spouse's income use their own.
Interest Rate
The rate does not change the RAP payment. It changes how much interest is waived and how fast principal falls.
Income Growth
Payments are reset when you recertify. A raise moves you into a higher bracket and raises the payment, which can shorten the time to payoff.
When to Use the RAP Calculator
If You Were on SAVE or Another Plan
The final rule requires borrowers on PAYE and ICR to pick a new plan before July 1, 2028. Use the tool to compare RAP with IBR using your own income.
If You Borrow After July 1, 2026
New loans are limited to RAP or Tiered Standard, so the choice is a lower payment now versus paying off sooner.
If You Plan for Public Service Loan Forgiveness
RAP is a qualifying plan in the rule, so a low payment can speed up forgiveness. Compare with the teacher loan forgiveness (PSLF) calculator.
Common Mistakes with RAP Estimates
1. Using Income Instead of AGI
RAP uses adjusted gross income from your tax return, not your gross pay. Take the AGI from Form 1040.
2. Forgetting Spouse Income
If you are married and file jointly, enter combined AGI, unless you qualify to use only your own.
3. Counting Parent PLUS Loans
Parent PLUS loans cannot be repaid under RAP, so do not include them in the balance.
4. Missing the Due Date
The interest subsidy and principal match need an on-time payment. A payment that advances your due date can stop the match for the skipped months.
5. Expecting Forgiveness to Be Free of Tax
This tool does not model tax on a forgiven balance. Check how the law treats forgiveness in the year it happens.
6. Judging by the Monthly Payment Alone
A lower payment can mean more years of payments. Compare total paid and years, not only the first row.
Accuracy and Limitations
The calculator follows the final rule text for RAP payments, the interest subsidy, the principal match and forgiveness. It uses simplified models for the rest. Your servicer sets your real payment.
What it calculates accurately
- The RAP base payment table, the $50 per dependent reduction and the $10 minimum, as written in 34 CFR 685.209.
- The unpaid-interest rule and the principal match of up to $50 a month.
- Forgiveness after 360 RAP payments, 240 or 300 IBR payments, and the Tiered Standard terms by balance.
- The IBR percent, the 150 percent of the 2026 HHS poverty guideline, the 10-year standard cap and the $5 and $10 payment floors.
What it does not account for
- Your real loan list: one balance and one weighted rate stand in for many loans.
- IBR interest capitalization events and the three-year subsidy on subsidized loans.
- Future poverty guidelines (held at the 2026 figures), future interest rates and changes in the rule.
- Months in deferment or forbearance, late payments, annual recertification gaps and changes in dependents.
- Tax on forgiven balances, state rules and your servicer's rounding. Anything after 2026-10-03.
How We Calculate the Payment
Frequently Asked Questions
How is the RAP payment calculated?
RAP takes a base payment from your adjusted gross income, divides it by 12, and subtracts $50 for each dependent. The base is $120 a year at $10,000 of AGI or less, then 1 percent to 10 percent of AGI by $10,000 steps. The payment never goes below $10.
Is the RAP percent applied to all of my income?
Yes. The final rule says the base payment is a percent of "such adjusted gross income", so the bracket percent applies to your entire AGI. That is why the payment can step up or down slightly at the bracket lines.
What happens to the interest I do not pay under RAP?
It is not charged to you. As long as you make your payment on time, the Secretary does not charge interest that your payment does not cover, so your balance does not grow from unpaid interest.
What is the RAP principal match?
When your on-time payment reduces principal by less than $50, the Department reduces your principal by the lesser of $50 or your payment, minus the principal you paid. A $10 payment on a loan with $200 of monthly interest can still cut principal by $10.
When is the balance forgiven under RAP?
After 360 qualifying monthly payments, which is at least 30 years. Qualifying months include on-time RAP payments, Tiered Standard payments and some payments under other plans listed in the rule.
Can Parent PLUS loans use RAP?
No. The rule lists Direct PLUS loans made to parents, and consolidation loans that repaid them, as ineligible for RAP. Direct Subsidized, Unsubsidized, graduate PLUS and other consolidation loans are eligible.
Can I still use IBR if I borrow after July 1, 2026?
Not for those loans. The final rule says only Direct Loans made before July 1, 2026 may be repaid under IBR, PAYE and ICR. Newer loans use RAP or the Tiered Standard plan.
How long is the Tiered Standard plan?
It depends on the total balance when you enter repayment: 10 years under $25,000, 15 years from $25,000 to under $50,000, 20 years from $50,000 to under $100,000, and 25 years at $100,000 or more. Payments are at least $50.
Does RAP count for Public Service Loan Forgiveness?
Yes. The same final rule lists the Repayment Assistance Plan as a qualifying repayment plan for PSLF. Your servicer tracks the months, and employer and loan rules still apply.
Why does my servicer show a different number?
Your servicer uses your actual loans, the AGI on file with the IRS, your recertified dependents and the true interest on each loan. This tool uses one blended rate and the figures you type.
Is my data saved?
No. The calculation runs in your browser and nothing is sent to our servers. Anything you choose to Save stays in this browser only.
Sources
- Reimagining and Improving Student Education: Federal Student Loan Program Final Regulations, 91 FR 23768 (U.S. Department of Education, published May 1, 2026, effective July 1, 2026, read 2026-10-03).
- Official PDF of the same final rule, Federal Register volume 91, page 23768 (U.S. Government Publishing Office, read 2026-10-03).
- 2026 poverty guidelines (U.S. Department of Health and Human Services, ASPE, read 2026-10-03).
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Explore all finance calculatorsThis calculator gives an educational estimate from the figures you enter. It is an estimate, not tax or financial advice, and it cannot replace your tax return, a tax professional or your loan servicer. Confirm your payment and plan options with your loan servicer or the Department of Education. MultiCalculators is not affiliated with or endorsed by the IRS, the U.S. Department of the Treasury or the U.S. Department of Education. Spotted an error? Let us know.
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