The New Student Loan RAP Plan: What Your Monthly Payment Will Be
RAP payments are 1–10% of AGI, minus $50 a month per dependent, never below $10. At $60,000 with no dependents that's about $250 a month. Payments at every income, and what to check.
By the MoneyBackKit team · Updated October 27, 2026 · 5 min read
From July 1, 2026, federal student loan borrowers have a new income-driven plan: the Repayment Assistance Plan (RAP). It ties your monthly payment to your adjusted gross income (AGI) and lowers it for each dependent. Here's how the payment is worked out, what it looks like at different incomes, and what to check before you switch.
How the RAP payment is set
- Your yearly payment is a percentage of your AGI: 1% just above $10,000, rising one point for each extra $10,000, up to 10% above $100,000.
- With AGI of $10,000 or less, the payment is $120 a year.
- Divide by 12, then subtract $50 a month for each dependent.
- The payment is never below $10 a month.
Monthly payments at different incomes
| AGI | % of AGI | No dependents | 1 dependent | 2 dependents |
|---|---|---|---|---|
| $25,000 | 2% | $42 | $10 | $10 |
| $40,000 | 3% | $100 | $50 | $10 |
| $60,000 | 5% | $250 | $200 | $150 |
| $80,000 | 7% | $467 | $417 | $367 |
| $100,000 | 9% | $750 | $700 | $650 |
| $130,000 | 10% | $1,083 | $1,033 | $983 |
An example
Say your AGI is $60,000 and you owe $35,000 at 6.5%. With no dependents the RAP payment is about $250 a month; with two dependents, about $150. Interest on that balance is about $190 a month, so the payment covers this month's interest.
What to check before you switch
- Compare plans. Use the official Loan Simulator at StudentAid.gov to compare RAP with the standard plan and any plan you're on now.
- Forgiveness. Ask how payments under RAP count toward Public Service Loan Forgiveness or income-driven forgiveness, and how long it takes.
- Married? Married borrowers filing jointly use joint AGI, which can raise the payment.
- Keep your income current. You'll need to certify your income each year; a drop in income can lower your payment.
- Only federal loans. Private student loans aren't eligible.