Right Repay

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.

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How the RAP payment is set, as a diagram
How the RAP payment is set. The exact rule is in the table below.
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

Questions people ask about RAP

Is RAP better than IBR?
It depends on your income and balance. RAP takes 1% to 10% of your whole adjusted gross income with no cap; IBR takes 10% of the income above 150% of the poverty line and never more than the 10-year Standard payment. Above roughly $100,000 of income, or with a balance you could clear in ten years, IBR or Standard usually costs less all in. The free ranking runs both on your numbers.
What is the smallest RAP payment?
$10 a month. An adjusted gross income of $10,000 or less pays the flat $10; each dependent child takes $50 off the monthly amount, and the payment never goes below $10.
Can I apply for RAP now?
Yes, since July 1, 2026, online at studentaid.gov/idr through the IDR Plan Request. The paper form has no RAP box yet, so choose it online. Consent to the IRS data share and your income is pulled from your return every year without another form.
Does RAP forgive the balance?
After 360 qualifying payments, 30 years. What is forgiven is taxable federal income in that year under the law in force since January 1, 2026; PSLF forgiveness is not taxed.
Does unpaid interest pile up on RAP?
No. Interest your payment does not cover is not charged and is never added to your balance, and if less than $50 of a full payment reaches principal the Department tops it up to $50.
Does RAP count toward PSLF?
Yes. Every on-time RAP payment counts toward the 120. Late payments do not, and months in a forbearance cannot be bought back on RAP.
Can I switch from RAP to IBR later?
Only if every loan you have was made before July 1, 2026. A new loan or a new consolidation on or after that date closes IBR for good. Months spent on RAP do not count toward IBR's 20 or 25 year forgiveness.
Are Parent PLUS loans eligible?
No. Parent PLUS loans, and consolidation loans that repaid Parent PLUS, are excluded from RAP. Consolidated Parent PLUS loans use ICR until it closes, or IBR where the rules allow.
How is RAP different from SAVE?
SAVE charged a share of the income above a poverty allowance and waived unpaid interest; the courts blocked it and it is being wound down. RAP charges a share of your whole income, also waives unpaid interest, and runs a 30-year clock instead of 20 or 25.
What happens when my income changes?
The payment is recalculated every year from your latest tax return. Filing separately counts only your income; filing jointly counts both, and when both spouses have federal loans the payment is split in proportion to the balances.
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