Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure . The new Repayment Assistance Plan (RAP) explained: Payments, forgiveness, and who qualifies K Kat Tretina Updated Fri, June 26, 2026 at 7:34 AM PDT 6 min read Federal student loans make up the majority of outstanding education debt, and part of their appeal is that they've historically offered more repayment options and borrower protections than other loans. In fact, more than half of all federal student loan borrowers about 55% are enrolled in an alternative repayment plan. But the U.S. Department of Education is phasing out most existing payment options , and as of July 1, 2026, the new Repayment Assistance Plan (RAP) will be the primary income-based repayment option going forward. The new plan changes how loan servicers calculate borrowers' monthly payments and extends the repayment term for many borrowers. Understanding how the new RAP plan works, who is eligible, and how to enroll will help you manage your federal student loan debt. Who qualifies for RAP? RAP will be available to most federal student loan borrowers starting on July 1, 2026. Eligible borrowers include those with: Direct Subsidized and Unsubsidized Loan Grad PLUS Loans Direct Consolidation Loans The one major exception is borrowers with Parent PLUS Loans. Parent PLUS Loan borrowers who take out any federal loans on or after July 1, 2026, are not eligible for RAP. Their only repayment option is the new tiered standard repayment plan. Parent PLUS Loan borrowers who had loans prior to July 1, 2026, can qualify for RAP and other repayment plans, but only if they consolidate their loans with a Direct Consolidation Loan prior to July 1 . The following loan types are not eligible for RAP in any circumstance: Federal Family Education Loans (FFEL) Health Education Assistance Loans Perkins Loans IRS authorization requirements Eligible federal loan borrowers can only qualify for the RAP if they authorize the U.S. Department of Education to obtain tax information from the IRS showing their income and the number of claimed dependents. The Department of Education will use that information to calculate your payments and will adjust them annually based on your tax return. Related: What student loan repayment will look like after Trump's budget bill How RAP calculates your monthly payment The RAP bases your monthly payment on a percentage of your adjusted gross income (AGI), divided by 12. Your payment is reduced by $50 for each dependent you claim on your federal tax return. But all borrowers, regardless of income or number of dependents, will pay at least $10 per month. Here's how payments work out, based on your AGI. This chart does not account for any dependents you claim. AGI Payment Percentage of AGI Monthly Payment Amount $10,000 or less $120 per year ($10 per month) $10.00 $10,001 to $20,000 1% $10.00 $16.67 $20,001 to $30,000 2% $33.34 $50.00 $30,001 to $40,000 3%...
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