The Repayment Assistance Plan (RAP) opened to federal student loan borrowers on July 1, 2026. This post explains the payment formula in 20 U.S.C. 1087e(q). It is general information, not financial advice.
Repayment Assistance Plan: how much will I pay?
If your adjusted gross income (AGI) is $10,000 or less, the yearly base payment is a flat $120. Above that, the base is a percentage of your whole AGI: 1% for $10,001 to $20,000, 2% for $20,001 to $30,000, and so on, up one point per $10,000, to 10% above $100,000. Divide by 12 for the monthly amount. Your balance does not matter.
RAP student loan payment calculator: examples
AGI $45,000 falls in the 4% tier, so the base is $1,800 a year, or $150 a month. Because the percentage applies to the entire AGI, the payment steps up at each line: at $50,000 it is $166.67 a month, and at $50,001 the 5% tier applies, so it is $208.34, a jump of about $42 a month for one extra dollar. Above $100,000 the rate stays at 10% with no cap.
RAP minimum payment $10 and dependents
The monthly amount is reduced by $50 for each dependent you claim on your tax return, but the payment cannot fall below $10. At AGI $45,000, two dependents bring $150 down to $50, and four dependents would take it to zero, so you pay the $10 minimum. Some third-party sites describe a "1% minimum"; the statute says $10. At the bottom of the 1% tier it matters: 1% of $10,001 is $8.33 a month, which is raised to $10.
RAP forgiveness after 360 payments
Any balance left after 360 qualifying monthly payments, or 30 years, is cancelled. If a payment cuts your principal by less than $50 in a month, the Department of Education reduces your principal by up to $50. If you are married, your spouse's income counts only if you file a joint return. RAP is not available for excepted loans such as Parent PLUS loans.
Try the RAP payment calculator → For the official estimate use the Loan Simulator at studentaid.gov. Related: student loan calculator.
Sources: 20 U.S.C. 1087e(q) (law.cornell.edu); studentaid.gov repayment plan pages. Rules verified October 9, 2026.