The Repayment Assistance Plan (RAP) is the new income-driven repayment plan created by the One Big Beautiful Bill Act (OBBBA), available July 1, 2026. It replaces the patchwork of older income-driven plans for new borrowers and works differently from them.
How RAP works
RAP places your total adjusted gross income (AGI) into one of 11 bands, each with a payment percentage. Unlike IBR, it does not subtract a poverty-guideline amount first.
| Annual AGI | RAP base payment |
|---|---|
| $0 - $10,000 | Flat $10/month |
| $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 |
| $100,001 and above | 10% of AGI |
Source: U.S. Department of Education OBBBA fact sheet and Public Law 119-21, as of June 2026.
The bracket percentage is applied to AGI, divided by 12, then reduced by $50/month per dependent child, with a $10/month minimum. For example, at $55,000 AGI with no dependents you fall in the 5% band: 5% of $55,000 is $2,750/year, or about $229/month.
The interest and principal sweeteners
Two features make RAP more generous than a plain percentage-of-income plan:
- Unpaid interest is waived when you make your scheduled payment, so your balance does not balloon.
- A principal match of up to $50/month is applied if your payment does not cover at least $50 of principal, guaranteeing the balance shrinks.
Forgiveness and PSLF
Any remaining balance is forgiven after 360 qualifying payments (30 years). If you work in public service, RAP payments count toward PSLF, so forgiveness can arrive after 120 payments (10 years) instead.
Estimate your own payment with the RAP calculator, see worked examples by income, or read the full RAP plan page.
General information, not financial or legal advice. The 2025-2026 rules are still being implemented - verify with your servicer and studentaid.gov.