What is RAP (Repayment Assistance Plan)?

Short answer: RAP is the federal income-driven repayment plan created by P.L. 119-21 that launched July 1, 2026. Your payment is 1%–10% of your total AGI divided by 12, minus $50 per dependent, never below $10 a month. Unpaid interest is waived after on-time payments, and any balance left after 360 qualifying payments is forgiven.

Last verified November 5, 2026 · PSLFCheck Editorial

How the RAP payment is calculated

Start with total AGI from your tax return.
Apply the rate: 1% at $10,001–$20,000, rising 1 point per $10,000, capped at 10% above $100,000. AGI of $10,000 or less pays $120 a year.
Divide by 12, subtract $50 per dependent, and apply the $10 minimum.

Example: AGI $50,000, no dependents → 4% × $50,000 = $2,000 a year ≈ $166.67/month.

Interest subsidy and principal match

If your on-time payment does not cover the month's interest, the unpaid interest is waived. If your payment reduces principal by less than $50, ED matches the difference up to $50 (capped at your payment amount). In practice, your balance should not grow on RAP when you pay on time.

Who can use RAP

Most Direct Loan borrowers. Parent PLUS loans, and consolidation loans that repaid Parent PLUS, are not eligible. RAP payments count toward PSLF.

Compare RAP vs IBR with my numbers →

FAQ

Does RAP count for PSLF?

Yes. RAP payments made while working full-time for a qualifying employer count toward the 120 PSLF payments.

Can my balance grow on RAP?

Not from unpaid interest if you pay on time: unpaid monthly interest is waived and a principal match of up to $50 applies.

Sources

Public Law 119-21 (One Big Beautiful Bill Act), Sec. 82001 — Congress.gov — accessed November 5, 2026
34 CFR 685.209 — Income-driven repayment plans (eCFR) — accessed November 5, 2026
Top FAQs About Income-Driven Repayment Plans — studentaid.gov — accessed November 5, 2026
CRS IF13075: The Repayment Assistance Plan in P.L. 119-21 — Congress.gov — accessed November 5, 2026
Edfinancial (federal servicer, studentaid.gov domain): RAP information — accessed November 5, 2026

Disclaimer: Not affiliated with the U.S. Department of Education or any loan servicer. Educational information, not financial or legal advice. Results are estimates. Confirm with studentaid.gov or your servicer. Published by PSLFCheck Editorial, AK Digital Marketing LLC.