New, since July 1, 2026
Repayment Assistance Plan (RAP)
The new income-driven plan: a share of your whole income, unpaid interest waived, forgiveness after 30 years.
See where it ranks for you, free Two minutes, your own numbers, every plan side by side.
- Payment
- A share of your adjusted gross income, not of discretionary income: 1% for AGI between $10,001 and $20,000, then one point more for each $10,000 bracket, up to 10% above $100,000. AGI at or under $10,000 pays $10. Subtract $50 a month for each dependent child. Never under $10. Married filing separately counts only your AGI, not your spouse's; filing jointly counts both incomes.
- Who qualifies
- Direct Loans, including Direct Consolidation Loans. FFEL and Perkins loans must be consolidated first. Parent PLUS loans and consolidation loans that repaid Parent PLUS are excluded. For any loan made on or after July 1, 2026 it is the only income-driven plan.
- Forgiveness
- The remaining balance is forgiven after 360 qualifying payments, 30 years. Months in RAP do not count toward IBR's 20 or 25 year forgiveness if you later switch.
- Interest
- Interest your payment does not cover is not charged; it is never added to your balance. If your payment reduces principal by less than $50, the Department tops it up so at least $50 goes to principal each month you pay in full.
- PSLF
- Qualifies. Every on-time payment counts toward the 120.
- Taxes
- Forgiveness after 30 years is taxable federal income in the year it happens, under the law since January 1, 2026. PSLF forgiveness is not.
- How to apply
- Online at studentaid.gov/idr with your FSA ID; the IDR Plan Request covers RAP, IBR, PAYE and ICR. Consent to the IRS data share for faster processing and automatic recertification. The paper form has no RAP box yet, so choose it online.
- Leaving it
- If every loan you have was made before July 1, 2026, you can move to IBR later. A new loan or a new consolidation on or after that date closes IBR for good.
- Dates
- Available since July 1, 2026. No end date.
Good for
- A balance that would otherwise grow: the interest waiver stops it
- Households with dependent children
- Middle incomes with large balances, where the AGI formula beats 10% of discretionary income
Watch out
- No cap: above roughly $100,000 of income the payment can exceed the 10-year Standard amount, where IBR would cap it
- A 30-year clock, ten years longer than new-borrower IBR
- Time in RAP does not count toward IBR's forgiveness clock
Where RAP lands for you depends on your numbers.
Right Repay runs every plan on your income, household, balance and loan dates, ranks them on all-in cost, and shows the math. Positions 2 onward are free; the kit to switch is $29.
Rank my plans, freeSources
- The Repayment Assistance Plan, In Focus IF13075 Congressional Research Service
- Public Law 119-21, the 2025 reconciliation act (student loan title) Congress.gov
- Income-driven repayment plans Federal Student Aid
- Top FAQs about income-driven repayment plans Federal Student Aid
- The IDR Plan Request application Federal Student Aid
- IBR vs. RAP: key differences AccessLex Institute
- IBR vs RAP Tate Law
- Switching between IBR and RAP Tate Law
Which plan is right for you depends on your income, your balance and your loans' dates.
Rank every plan for me, freeThe other plans
- Income-Based Repayment (IBR)Open, permanent for loans made before July 2026
- Standard 10-yearThe default when you choose nothing
- Graduated 10-yearOpen
- Extended 25-yearOpen, for more than $30,000 in Direct Loans
- Pay As You Earn (PAYE)Closing: ends by July 1, 2028
- Income-Contingent Repayment (ICR)Closing: ends by July 1, 2028
- Tiered StandardNew, for loans made on or after July 1, 2026