Student loans2 min read · Updated October 19, 2026
Repayment Assistance Plan (RAP): how your payment is worked out
How the federal Repayment Assistance Plan sets your payment from income, a worked table, and how it compares with the 10-year standard plan.
The formula
Take last year's AGI. Find your band: $10,001 to $20,000 is 1%, $20,001 to $30,000 is 2%, and so on, up to 9% for $90,001 to $100,000 and 10% above that. Divide the yearly amount by 12, then subtract $50 for each dependent. Below $10,000 AGI the payment is $120 a year, and the monthly minimum is $10.
Examples
| AGI | Monthly payment, no dependents |
| $20,000 | $17 |
| $40,000 | $100 |
| $60,000 | $250 |
| $80,000 | $467 |
| $100,000 | $750 |
| $150,000 | $1,250 |
RAP or the standard plan
On a $40,000 balance at 6.5%, the 10-year standard plan is about $454 a month. On a $60,000 income RAP is about $250. RAP is lower when income is modest, and the standard plan clears the debt in ten years.
Who can use which plan
Loans from July 1, 2026 onward have two choices: RAP and a tiered standard plan. Borrowers with older loans can keep other plans for now, and PAYE and ICR end on July 1, 2028. Parent PLUS loans are not eligible for RAP. Check your own loan types on studentaid.gov.
Common questions
How is the RAP payment calculated?
A percentage of adjusted gross income, from 1% to 10% by $10,000 band, divided by 12, minus $50 per dependent, with a $10 monthly minimum.
How long until RAP forgives my loan?
Remaining balances are forgiven after 30 years of repayment.
Is RAP cheaper than the standard plan?
Often yes for lower or middle incomes, but it can take far longer to pay off. Compare both.