How are RAP payments calculated?
RAP uses your adjusted gross income from your most recent tax return. Find your band, take that percentage of your AGI, divide by 12, then subtract $50 for each dependent. The payment never drops below $10.
| AGI | Yearly payment |
|---|---|
| $10,000 or less | $10/month minimum |
| $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 |
| Over $100,000 | 10% of AGI |
What is the Tiered Standard plan?
It replaces the old 10-year standard plan for new loans. The term depends on what you owe when repayment starts:
- Under $25,000: 10 years
- $25,000 to $49,999: 15 years
- $50,000 to $99,999: 20 years
- $100,000 or more: 25 years
Longer terms lower the monthly payment but raise total interest. There’s no forgiveness and no PSLF credit, so public-service workers should use RAP instead.
How much does paying extra save?
Every extra dollar goes straight to principal, which cuts future interest. On a $38,000 balance at 6.5%, adding $100 a month to the standard payment saves $3,584 in interest and finishes 2 years and 5 months early. Try your own amount in the calculator. If you also carry credit card debt, pay that first — card rates are usually far above student loan rates.
Planning your budget around a loan payment? Check what lands in your account with the take-home pay calculator.
Frequently asked questions
What is the Repayment Assistance Plan (RAP)?
RAP is the income-driven plan created by the One Big Beautiful Bill Act for federal Direct Loans. Your payment is 1% to 10% of your AGI, divided by 12, minus $50 per dependent, with a $10 minimum. Unpaid interest is waived, principal falls by at least $50 a month, and any balance left after 30 years (360 payments) is forgiven.
How much will my RAP payment be?
Find your AGI band in the table, multiply your AGI by that percentage and divide by 12, then subtract $50 for each dependent. Example: $55,000 AGI with no dependents is 5% × $55,000 ÷ 12 = $229 a month.
Which plans can I use after July 1, 2026?
New loans disbursed on or after July 1, 2026 can only use the Tiered Standard plan or RAP. If all your loans are older, you can also stay on legacy plans like IBR, and PAYE and ICR remain available until they close on July 1, 2028. Parent PLUS loans aren’t eligible for RAP.
Does RAP count toward Public Service Loan Forgiveness?
Yes. RAP payments count as qualifying payments for PSLF, which forgives the remaining balance tax-free after 120 qualifying payments while working full-time for a government or non-profit employer.
Is it better to pay extra or use an income-driven plan?
If you won’t qualify for PSLF and your income is high relative to your debt, paying extra on a fixed plan usually costs the least. If your debt is large relative to income, or you work in public service, RAP can cost far less because of interest waivers and forgiveness. The table in the calculator ranks the options for your numbers.
Sources
Estimates for planning, not financial, tax or legal advice. CalciTools calculators use published government figures and the assumptions shown on each page. Your actual numbers depend on details we don’t model. Check important decisions with a qualified professional.