What Is the Repayment Assistance Program (RAP)?
Federal student loan repayment has undergone some major changes under the Trump Administration. Among the most significant is the end of the Saving on a Valuable Education (SAVE) Plan and the introduction of a new income-driven repayment option known as the Repayment Assistance Plan (RAP).
The SAVE Plan officially ended following a federal court order in March 2026, requiring borrowers enrolled in SAVE to select another eligible repayment plan. Meanwhile, legislation signed by President Trump created RAP as part of a broader overhaul of the federal student loan system. RAP became available July 1, 2026, and bases monthly payments on a borrower’s adjusted gross income (AGI) and number of dependents.
Although RAP shares some characteristics with previous income-driven repayment (IDR) plans, there are important differences borrowers should understand—including a longer path to loan forgiveness and a required minimum monthly payment.
Key Takeaways
RAP is a new income-driven repayment plan that became available July 1, 2026. Monthly payments are generally based on a percentage of adjusted gross income and are reduced by $50 for each qualifying dependent.
RAP requires at least a $10 monthly payment and provides forgiveness of any remaining eligible balance after 30 years (360 months) of qualifying payments.
RAP includes protections against growing balances, including an unpaid-interest subsidy and a government principal match for certain borrowers who make full, on-time payments.
Who Qualifies for RAP?
RAP is available to borrowers with eligible Direct Loans, including:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans made to graduate or professional students
- Eligible Direct Consolidation Loans
Parent PLUS Loans are not eligible for RAP. Direct Consolidation Loans that repaid a Parent PLUS Loan generally aren’t eligible either. Defaulted loans also aren’t eligible for an IDR plan while they remain in default, although borrowers may become eligible after resolving the default through options such as rehabilitation or, in some circumstances, consolidation.
Loan dates also matter. For borrowers whose federal student loans were all disbursed on or after July 1, 2026, RAP is the only available income-driven repayment plan. Borrowers whose loans were disbursed before that date may have other repayment options available depending on their loan type and circumstances.
Monthly Payment Requirement by Income
Unlike some previous income-driven repayment plans that calculate payments using discretionary income, RAP generally uses a percentage of the borrower’s adjusted gross income (AGI). The percentage increases as income rises:
| Adjusted Gross Income (AGI) | RAP Base Annual Amount |
| $10,000 or less | $120 |
| $10,001 – $20,000 | 1% of AGI |
| $20,001 – $30,000 | 2% of AGI |
| $30,001 – $40,000 | 3% of AGI |
| $40,001 – $50,000 | 4% of AGI |
| $50,001 – $60,000 | 5% of AGI |
| $60,001 – $70,000 | 6% of AGI |
| $70,001 – $80,000 | 7% of AGI |
| $80,001 – $90,000 | 8% of AGI |
| $90,001 – $100,000 | 9% of AGI |
| More than $100,000 | 10% of AGI |
The annual base amount is divided by 12 to determine the monthly amount. Borrowers can then receive a $50 monthly reduction for each qualifying dependent claimed on their federal tax return, subject to RAP’s minimum monthly payment of $10.
For example, a borrower with an AGI of $50,000 falls into the 4% bracket. Four percent of $50,000 is $2,000, which works out to approximately $166.67 per month before applying any dependent reductions.
For married borrowers, tax filing status can also affect the calculation. Generally, joint filers have both spouses’ income considered, while married borrowers who file separately have their payment calculated using their individual income and the dependents claimed on their return.
How Does RAP Differ From SAVE?
RAP replaces SAVE as an available income-driven option, but borrowers shouldn’t assume the two plans work the same way.
Repayment Length & Loan Forgiveness
RAP has a longer path to loan forgiveness than SAVE. Under SAVE, borrowers could generally qualify to have their remaining balance forgiven after 20 or 25 years of qualifying payments, depending on the types of loans they had. Under RAP, borrowers must make 360 qualifying monthly payments, or 30 years of payments, before any remaining eligible balance can be discharged. This means some borrowers could spend significantly longer in repayment under RAP. However, borrowers who qualify for programs such as Public Service Loan Forgiveness (PSLF) may be able to receive forgiveness sooner if they meet that program’s separate requirements.
Minimum Monthly Payment
Another major change involves minimum payments. SAVE allowed some low-income borrowers to have a required payment of $0 per month. RAP generally requires borrowers to pay at least $10 per month, even when the income-based calculation or dependent adjustment would otherwise produce a lower amount. This means borrowers who previously qualified for a $0 SAVE payment should not automatically expect the same result under RAP.
Additional Benefits of RAP
Although RAP may require some borrowers to repay their loans for a longer period, the plan includes two important features designed to prevent balances from growing and help borrowers make progress toward paying down their debt.
Interest Subsidy
One concern with income-driven repayment has traditionally been negative amortization. This happens when a borrower’s required payment isn’t enough to cover the interest accumulating on the loan, potentially causing the balance to grow even while the borrower is making payments.
RAP addresses this problem with an interest subsidy. When a borrower makes their full, on-time RAP payment but the payment isn’t enough to cover all the interest that accrued for the month, the remaining unpaid interest is subsidized. As a result, borrowers who meet RAP’s payment requirements are protected from having their balances grow simply because their required payment doesn’t cover the month’s interest.
Principal Match
RAP also introduces a feature designed to ensure borrowers make progress on their principal balance. When a borrower’s full, on-time monthly payment reduces principal by less than $50, the federal government may provide an additional principal reduction. The matching amount is calculated so that eligible borrowers can receive up to $50 in additional principal reduction, subject to the program’s formula and the amount they paid.
For example, if a borrower makes a $40 required monthly payment and none of that payment reaches principal because it goes toward interest, the government could provide a $40 principal reduction. Combined with the interest subsidy, the principal match is intended to help borrowers avoid a situation where they make required payments month after month without seeing their loan balance decrease.
Frequently Asked Questions
Next Steps: What If You Haven’t Changed Repayment Plans Yet?
If you enrolled in SAVE and haven’t selected another repayment plan yet, don’t ignore communications from your federal student loan servicer. The Department of Education has directed former SAVE borrowers to transition to an eligible repayment plan. Servicers began issuing notices starting July 1, 2026, giving affected borrowers a specific deadline to select another plan. Borrowers who do not make a selection by the deadline communicated by their servicer may be automatically moved to a Standard or Tiered Standard repayment plan.
Start by logging in to your StudentAid.gov account to review your loans, current repayment status, and available plans. Federal Student Aid’s repayment tools can also help you estimate your monthly payment under RAP and compare it with other plans. Before making a change, consider more than just the monthly payment. Your repayment period, total interest costs, eligibility for forgiveness programs, and expected future income can all affect how much you ultimately pay.
