What Is the RAP Student Loan Plan? The New Repayment Assistance Plan Explained

A new name is showing up in student loan news: RAP. It stands for the Repayment Assistance Plan. It is a new income-driven repayment plan, and it is part of the changes that StudentAid.gov says are coming to federal student loan repayment.

This guide explains what RAP is in plain words, using only what StudentAid.gov says today. It covers who it is for, how the payment is worked out, how it differs from the older income-driven repayment plans, and what StudentAid.gov does and does not say about timing.

The short answer

The Repayment Assistance Plan, or RAP, is a new income-driven repayment plan from StudentAid.gov. Your monthly payment is based on a share of your adjusted gross income, from 1 percent to 10 percent, divided by 12 months, with a $50 reduction for each dependent. StudentAid.gov ties RAP eligibility to loans and loan dates around July 1, 2026.

What is the Repayment Assistance Plan?

RAP is an income-driven repayment plan, often called an IDR plan. StudentAid.gov lists it with the other IDR plans on its repayment plans page and on its income-driven repayment page. The full name is the Repayment Assistance Plan, and the short name is RAP. Like the other IDR plans, it bases your monthly payment on your income, instead of using only your loan balance and interest rate.

RAP is new. StudentAid.gov says the One Big Beautiful Bill Act made significant changes to income-driven repayment plans. That act was signed into law on July 4, 2025. The One Big Beautiful Bill Act updates page on StudentAid.gov, last updated Oct. 30, 2026, says some of its provisions take effect on July 1, 2026, and others will take effect in coming years. It also says that in May 2026 a final rule was issued to implement many of the changes, and additional rules may come later.

Who is RAP for?

RAP is for borrowers with the loan types StudentAid.gov lists for the plan. The repayment plans page says RAP covers Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans for graduate or professional students, and Direct Consolidation Loans that do not include Direct PLUS Loans for parents. It does not list Direct PLUS Loans for parents as eligible for RAP.

Defaulted loans are not eligible for any income-driven repayment plan. StudentAid.gov says this on its income-driven repayment page. If your loan is in default, you need to get out of default first before you can use RAP or another IDR plan.

Timing is tied to loan dates. StudentAid.gov says that if your eligible loans were taken out before July 1, 2026, you are permitted to access Income-Based Repayment, Income-Contingent Repayment, and Pay As You Earn on or after July 1, 2026. It adds that there is no restriction on enrolling in them unless you receive a disbursement on a new loan on or after July 1, 2026. Once you receive the first disbursement on a loan as of July 1, 2026, you lose eligibility for IBR, ICR, and PAYE. Eligible loans will have access to RAP.

When does RAP start?

StudentAid.gov does not give a single start date for RAP on the repayment plans page or the income-driven repayment page checked for this guide on 7 November 2026. That is an important point. The pages do not say, in one line, that RAP opens on a certain day. Instead, they describe RAP as the new plan and tie eligibility for the older plans and for RAP to the July 1, 2026, loan dates described above. Check the current pages before you plan around RAP.

How is the RAP payment worked out?

StudentAid.gov gives the payment formula in simple terms. Under RAP, your payment is based on a percentage of your adjusted gross income, from 1 percent to 10 percent, divided by 12 months. The amount can be reduced by $50 for each dependent. It can also change depending on the number of dependents you have, or if you are married and file taxes jointly with your spouse.

As with other IDR plans, your payment under RAP can be as low as $0 if your income is low enough. StudentAid.gov says that if your income is low enough, your monthly payment could be as low as $0 under an IDR plan. A $0 payment does not mean the loan has gone away. Interest can still build up, and you still need to recertify each year.

How RAP differs from the other IDR plans

RAP is one of four IDR plans that StudentAid.gov lists today. The other three are Income-Based Repayment, or IBR, Income-Contingent Repayment, or ICR, and Pay As You Earn, or PAYE.

First, the payment base is different. RAP uses a share of adjusted gross income, from 1 percent to 10 percent. IBR uses 10 percent of discretionary income for a borrower who is a new borrower on or after July 1, 2014, and before July 1, 2026, and 15 percent for a borrower who is not a new borrower on or after July 1, 2014. ICR uses the lesser of 20 percent of discretionary income or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted for your income. PAYE uses 10 percent of discretionary income.

Second, the cap is different. Under PAYE and IBR, your monthly payment amount will never be more than the 10-year Standard Repayment Plan amount. Under ICR and RAP, your payment amount is not capped in this way. That means a RAP payment is not limited by the standard 10-year amount.

Third, the repayment period is different. The repayment period for RAP is 30 years. For IBR, it is 20 years for a borrower who is a new borrower on or after July 1, 2014, and before July 1, 2026, and 25 years for a borrower who is not a new borrower on or after July 1, 2014. For ICR, it is 25 years. For PAYE, it is 20 years. At the end of the repayment period, your remaining loan balance may be discharged.

Fourth, the future is different. StudentAid.gov says the One Big Beautiful Bill Act eliminates the ICR and PAYE Plans in the future, no later than July 1, 2028. It does not say that about RAP or IBR. Instead, the repayment plans page presents RAP as the plan that eligible loans will have access to when a borrower loses eligibility for the older plans after a new loan disbursement on or after July 1, 2026.

Recertification, interest, and forgiveness

You must recertify every year under an IDR plan. StudentAid.gov says you must recertify every year. That means you tell your servicer about your income and family size again, once a year. It also says to submit your recertification when it is due, as some plans may increase your monthly payment amount to the 10-year Standard Repayment Plan amount if you fail to recertify on time.

A lower monthly payment does not always mean you pay less in total. StudentAid.gov says that even if you qualify for a small monthly payment, you may pay more in interest over time, and sometimes significantly more. A smaller payment can leave more of your balance unpaid for longer, and interest keeps adding up while the loan is in repayment.

Forgiveness works in the same broad way as for the other IDR plans. Under an IDR plan, your remaining loan balance may be discharged by the end of the repayment period. For RAP, that period is 30 years. StudentAid.gov says that under current IRS rules, you might be required to pay income tax on the amount discharged if you still have a remaining loan balance at the end of your repayment period. Before you choose, check your loan type and loan dates on your StudentAid.gov dashboard, read the eligible loan list for RAP, and talk to your loan servicer if you are unsure.

Quick answers

Related guides

• What Is an IDR Plan? Income-Driven Repayment in Simple Words
• What Is TEPSLF?
• PSLF Eligibility: The Basic Rules for Who Qualifies

Further reading

• Federal Student Loan Repayment Plans, StudentAid.gov
• Income-Driven Repayment Plans, StudentAid.gov
• One Big Beautiful Bill Act Updates, StudentAid.gov

This guide is for education only. It is not financial advice, and it does not tell you which repayment plan to choose. Student loan rules can change, so check StudentAid.gov for the current rules, dates, and eligibility before you apply or change a plan. If you need help with your own loans, talk to your loan servicer or a qualified professional.