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The One Big Beautiful Bill Act created the Repayment Assistance Plan (RAP) — a bracketed, income-driven repayment plan with a $10 floor, 10% cap, $50/month dependent deduction, and 30-year forgiveness. Federal loans disbursed on or after July 1, 2026 are auto-enrolled in RAP; existing borrowers can opt in via consolidation. Enter your AGI, family size, and balance below to see your new monthly payment.
Monthly RAP payment
$116.67
vs $420/mo current
$303.33 less
Total paid over 30 yr
$42,000
Forgiven at month 360
$22,000
At $50,000 AGI with 1 dependent, RAP puts you in the 4% bracket: ($50,000 × 4%) ÷ 12 = $166.67, minus $50 for the dependent = $116.67/month. Over 360 payments you would pay $42,000 total. The government waives $18,498.75 in unpaid interest along the way (no capitalization). At month 360, $22,000 would be forgiven — if forgiveness is taxable at a 22% bracket that is a $4,840 tax bill in year 31.
Source: FinCalc server-rendered example using the same formulas as the interactive calculator.
AGI $40,001 – $50,000 = 4% of AGI / 12 = $166.67 per month before dependents.
Final monthly RAP payment: $116.67 (after −$50 for 1 dependent)
Line 11 of your most recent 1040. For married-filing-jointly this is the joint figure.
−$50/month each.
Federal loans only — private loans aren't eligible for RAP.
Whatever you pay today on SAVE / PAYE / IBR / standard. Used only for the savings comparison.
For sizing the "tax bomb" if forgiveness is taxable.
IRC §108(f)(5) exclusion expires post-2025 in current law.
Monthly RAP payment
$116.67
4% bracket
Monthly savings
$303.33
$3,640/yr cheaper
Total paid over 360 mo
$42,000
30 years of RAP payments
Amount forgiven at month 360
$22,000
30-year balance remaining
$22,000 forgiven × 22% bracket =
$4,840
Owed in the year of forgiveness if taxable. PSLF forgiveness (after 120 payments) remains tax-free regardless.
Unpaid interest never capitalizes under RAP. The principal subsidy guarantees your balance falls by at least $50/month even on very small payments.
| Feature | RAP (2026+) | SAVE (ending July 2026) | IBR / PAYE |
|---|---|---|---|
| Payment base | Bracket on AGI | 5%/10% of discretionary | 10%/15% of discretionary |
| Floor | $10/month | $0 if discretionary ≤ 0 | $0 if discretionary ≤ 0 |
| Family deduction | −$50/dependent | 225% FPL exemption | 150% FPL exemption |
| Forgiveness | 360 mo (30 yr) | 240/300 mo (20/25 yr) | 240/300 mo (20/25 yr) |
| Unpaid interest | 100% waived | 100% waived | Some capitalizes |
| Principal subsidy | Up to $50/mo | None | None |
| PSLF eligible | Yes (10 yr) | Yes | Yes |
New loans after July 1, 2026 are auto-enrolled in RAP. Existing borrowers can consolidate to opt-in — but consolidation usually resets your forgiveness clock to month 0. If you have IBR/PAYE/SAVE credit already counted, consolidating to RAP will likely cost you years of progress. Only consolidate if (a) your current plan ends and RAP is genuinely cheaper for you, or (b) you have a strategic reason like PSLF qualification.
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RAP replaces the discretionary-income formula used by SAVE, IBR, and PAYE with a simpler bracket table. Each $10,000 of AGI adds 1 percentage point of annual payment, up to 10% at $100,000+:
| AGI | % of AGI | Monthly payment (no dependents) |
|---|---|---|
| ≤ $10,000 | $10 floor | $10 |
| $10,001 – $20,000 | 1% | $8.33 – $16.67 |
| $20,001 – $30,000 | 2% | $33.33 – $50.00 |
| $30,001 – $40,000 | 3% | $75.00 – $100.00 |
| $40,001 – $50,000 | 4% | $133.33 – $166.67 |
| $50,001 – $60,000 | 5% | $208.33 – $250.00 |
| $60,001 – $70,000 | 6% | $300.00 – $350.00 |
| $70,001 – $80,000 | 7% | $408.33 – $466.67 |
| $80,001 – $90,000 | 8% | $533.33 – $600.00 |
| $90,001 – $100,000 | 9% | $675.00 – $750.00 |
| $100,001+ | 10% (cap) | $833.33+ |
After the bracket math, subtract $50/month per dependent. Then apply the $10 floor (no one pays less than $10) and the 10% AGI cap. Unpaid monthly interest is waived by the government and never capitalizes — and on small payments, the government additionally contributes up to $50/month toward principal, so your balance always falls by at least $50 per month. Forgiveness arrives after 360 qualifying payments (30 years), or 120 for PSLF.
Note: this calculator covers federal loans only. Private student loans are not eligible for RAP. If you have a mix, see the Student Loan Payoff Calculator for refinance and standard-repayment comparisons.
Federal loans first disbursed on or after July 1, 2026 are auto-enrolled in RAP. Existing borrowers on the SAVE plan are not automatically transitioned — but SAVE itself ends July 1, 2026, and your servicer will move you to a different plan (likely IBR by default). To get into RAP from an older loan, you generally need to consolidate, which resets your forgiveness clock to month 0.
No. The One Big Beautiful Bill Act terminates the SAVE plan as of July 1, 2026. Existing SAVE borrowers will be transitioned to another plan — IBR by default for most. You can affirmatively choose RAP if it produces a lower payment, but the choice is irreversible until your circumstances change materially.
RAP payments are recalculated annually based on the AGI from your most recent federal tax return (or alternative documentation if your income dropped significantly). You can request an interim recalculation if you experience a job loss, pay cut, or family-size change. The $10 floor and 10% cap still apply at every recalculation.
RAP payments count toward Public Service Loan Forgiveness (PSLF) — 120 qualifying payments while working for an eligible employer. PSLF forgiveness is tax-free under IRC §108(f)(1), regardless of what happens to §108(f)(5) for non-PSLF IDR forgiveness. If you are pursuing PSLF, the RAP payment formula is usually fine because PSLF forgives the remaining balance at the 10-year mark, well before the 30-year RAP forgiveness milestone.
Under RAP, if you file MFS, only your AGI counts toward the bracket. This can be a powerful payment-reduction strategy when one spouse earns significantly more. However, MFS gives up the student-loan interest deduction, restricts IRA contributions, and disqualifies you from several credits (Earned Income, Child & Dependent Care, education credits). Run the joint vs separate tax filings side by side before choosing — sometimes the lost credits outweigh the RAP savings.
Yes. When you file married filing jointly, RAP uses the joint AGI from line 11 of your 1040. That puts you in a higher bracket than if you filed separately — but joint filing usually gives you more favorable tax treatment overall. MFS is the lever you pull specifically to lower the RAP payment, accepting the tax cost.
Under current law, yes — the IRC §108(f)(5) exclusion for IDR forgiveness expires after 2025. Without an extension, RAP forgiveness in year 31 will be taxed as ordinary income. The calculator estimates this as a "tax bomb" using your projected marginal bracket. PSLF forgiveness under §108(f)(1) remains tax-free regardless.
Usually no. IBR forgiveness arrives at 20 or 25 years depending on when you borrowed — RAP's 30-year clock is longer. Switching requires consolidation, which resets your forgiveness count to zero. The only reasons to consolidate into RAP: (1) your current plan no longer exists, (2) RAP produces a meaningfully lower monthly payment AND you are not pursuing PSLF, or (3) consolidation is otherwise required (e.g., to qualify for PSLF on parent PLUS loans).