Estimate your monthly student loan payment under the new Repayment Assistance Plan (RAP) effective July 2026. RAP uses a "1% step rule" where your repayment rate equals 1% per $10,000 of AGI, capped at 10%, applied to your full adjusted gross income. See your payment timeline, total cost, and potential forgiveness amount at 30 years.
The Repayment Assistance Plan (RAP) is the new income-driven student loan repayment plan effective July 2026, replacing the previous SAVE plan. The structure was created by the 2025 budget reconciliation legislation as part of broader student loan reform. RAP simplifies the income-driven calculation: your repayment rate equals 1% for every $10,000 of adjusted gross income, capped at 10% of AGI (reached at $100,000+ AGI). Your annual payment is your repayment rate times your AGI. The minimum monthly payment is $10.
Unlike prior IDR plans that used "discretionary income" (AGI minus 150% of the federal poverty line), RAP applies the calculated percentage directly to full AGI. This generally produces higher payments than SAVE for the same AGI but provides simpler math. The 30-year payoff horizon, after which remaining balances are forgiven (and the forgiven amount becomes taxable under post-2025 rules — see the loan-forgiveness-tax calculator), continues from prior IDR plans.
This calculator computes your monthly RAP payment based on AGI, projects how long it takes to pay off your loan at that payment rate (or whether the balance grows due to interest exceeding payments), and estimates the eventual forgiveness amount at year 30 if you don't fully pay off. Use it to plan student loan strategy, compare RAP to alternative payment plans (Standard, Graduated, Extended), and prepare for the tax implications of eventual forgiveness.
$80,000 loan at 6% interest. $35,000 AGI. Family size 1. Repayment rate: 35,000 / 10,000 = 3.5% Annual payment: $35,000 × 3.5% = $1,225 Monthly payment: $102 Monthly interest at 6%: $80,000 × 0.06/12 = $400 Monthly payment $102 << interest $400. Balance grows by $298/month early on. Over 30 years (assuming AGI grows modestly with inflation), balance may grow to $150,000-$200,000 before forgiveness. Significant forgiveness — and significant eventual tax bomb (potentially $30K-$50K tax on the forgiveness). For this borrower, RAP keeps payments affordable but creates a future tax obligation. Plan ahead with the loan-forgiveness-tax calculator.
$45,000 loan at 5.5%. $60,000 AGI. Repayment rate: 60,000 / 10,000 = 6% Annual payment: $60,000 × 6% = $3,600 Monthly payment: $300 Monthly interest: $206 Principal each month: $94 (growing as balance shrinks) Loan pays off in approximately 22-25 years (within the 30-year window). No forgiveness, no tax-bomb. Total cost: ~$80,000-$90,000 paid over 22-25 years. Could also pay off faster by adding extra principal payments — Standard 10-year plan at same loan would cost ~$60,000 total but with much higher monthly payment.
$30,000 loan at 5%. $120,000 AGI (top of family bracket). Repayment rate: capped at 10% Annual payment: $120,000 × 10% = $12,000 Monthly payment: $1,000 Monthly interest: $125 Principal each month: $875 Loan pays off in approximately 2.5-3 years. RAP at high income functions essentially like the Standard 10-year plan — high payments, fast payoff, low total interest. For high earners, RAP isn't saving anything vs. just paying the Standard plan. The savings of IDR plans accrue mainly to lower-income borrowers.
Use this calculator if you have federal student loans and are evaluating RAP vs. other repayment options (Standard, Graduated, Extended, refinancing to private). Most useful for: recent graduates with income uncertainty, borrowers facing temporary income reductions, public-service workers planning PSLF, and any borrower whose Standard plan payment is burdensome.
RAP is generally appropriate when: (1) your Standard plan payment is unaffordable (greater than 10-15% of monthly take-home), (2) you have a large balance relative to income, (3) you're working toward PSLF (RAP qualifies as a qualifying repayment plan), or (4) you expect income to grow significantly over time.
RAP is less appropriate when: you have a small balance and can pay it off quickly, you have high income (just pay Standard), you don't want the complexity of annual income recertification, or you want to avoid the eventual tax bomb on forgiveness.
Pair with: student-loan-payoff calculator (Standard plan comparison), loan-forgiveness-tax (for the tax bomb planning), income-tax-estimator (since AGI drives the RAP payment).
Critical practical considerations:
1. **Annual recertification required.** RAP payments are recalculated each year based on new AGI. Job change, income growth, or significant income drop all change next year's payments. Plan around recertification timing.
2. **PSLF compatibility.** RAP payments qualify for Public Service Loan Forgiveness. PSLF still requires 120 qualifying monthly payments and qualifying employment, but RAP payments count.
3. **Tax-bomb planning.** If your trajectory leads to forgiveness at year 30, plan for the tax bill. Set aside savings throughout your repayment period to fund the eventual tax obligation.
4. **Filing status affects AGI.** For married couples, filing jointly combines incomes (RAP calculation uses combined AGI). Filing separately uses only your AGI but eliminates some tax benefits. The decision is more complex for IDR borrowers and worth a conversation with a tax advisor.
5. **Negative amortization.** When your payment is less than the monthly interest, your balance grows. For RAP, this can mean ending the 30-year period with a balance much larger than your original principal. The forgiveness at year 30 offsets this — but the tax bomb is calculated on the forgiven amount.
6. **Recent legislative changes.** Student loan policy has been in significant flux. The 2025 reconciliation bill that created RAP may be modified further. Monitor policy developments and consult studentaid.gov for current rules.
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Monthly Payment
$208.33
Repayment Rate
5%
Total Paid
$66,956.54
Total Forgiven
$0.00
| Year | Annual Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $2,500.00 | $589.72 | $1,910.28 | $34,410.28 |
| 2 | $2,500.00 | $622.98 | $1,877.02 | $33,787.30 |
| 3 | $2,500.00 | $658.12 | $1,841.88 | $33,129.17 |
| 4 | $2,500.00 | $695.25 | $1,804.75 | $32,433.93 |
| 5 | $2,500.00 | $734.47 | $1,765.53 | $31,699.46 |
| 6 | $2,500.00 | $775.89 | $1,724.11 | $30,923.57 |
| 7 | $2,500.00 | $819.66 | $1,680.34 | $30,103.90 |
| 8 | $2,500.00 | $865.90 | $1,634.10 | $29,238.01 |
| 9 | $2,500.00 | $914.74 | $1,585.26 | $28,323.27 |
| 10 | $2,500.00 | $966.34 | $1,533.66 | $27,356.93 |
| 11 | $2,500.00 | $1,020.85 | $1,479.15 | $26,336.08 |
| 12 | $2,500.00 | $1,078.43 | $1,421.57 | $25,257.65 |