The Repayment Assistance Plan (RAP) in 2026: Who Qualifies, How Your Payment Is Calculated, and the $10 Floor Even a $0-Income Borrower Owes

7 min read · Last updated July 20, 2026

A borrower who spent two years on the SAVE plan paying $0 a month opens a servicer notice in July 2026 and reads that she now owes at least $10 every month, with no exceptions. She is one of the roughly 43 million federal student loan borrowers navigating the biggest repayment change in a decade, and it is landing while student loan defaults are surging back after pandemic-era protections ended.

RAP is not optional for new borrowers, and the rules for who it covers are specific. Here is how the program works and how to figure out your own payment.

In this article

– What RAP is – Who qualifies and which loans count – How your payment is calculated – The interest and principal subsidies – The switch window and how to enroll – Mistakes that cost borrowers money – FAQ

What RAP is

RAP is a new income-driven repayment plan created by the One Big Beautiful Bill Act (OBBBA), the 2025 federal law that overhauled student loan repayment. It became available on July 1, 2026, and it replaced the SAVE plan, which has ended.

Like the older income-driven plans, RAP ties your monthly bill to what you earn rather than what you owe. Unlike them, it runs for 30 years. After 360 qualifying monthly payments, the government forgives whatever balance remains. It is one of only two repayment options, alongside the standard plan, available to anyone who borrows a new federal loan on or after July 1, 2026.

Who qualifies and which loans count

RAP is for federal Direct Loan borrowers. These loans are eligible:

– Direct Subsidized and Direct Unsubsidized Loans – Graduate PLUS Loans – Direct Consolidation Loans (as long as they do not include a Parent PLUS loan)

Here is the part that trips people up. Parent PLUS loans do not qualify for RAP, and a Direct Consolidation Loan that rolled in a Parent PLUS loan does not qualify either. If you are a parent who borrowed for your child, RAP is not open to you, and you will need to look at other repayment routes.

Timing decides your options. If you have a Direct Loan taken out before July 1, 2026, you can choose RAP but you may also keep certain older plans. If your loan is dated on or after July 1, 2026, RAP is the only income-driven plan you can use. The remaining older plans, PAYE and ICR, are scheduled to end by July 1, 2028, and borrowers still on them will be moved to RAP automatically.

One more group needs to pay attention: anyone pursuing Public Service Loan Forgiveness (PSLF). PSLF still requires 120 qualifying payments. The standard plan does not count toward PSLF, so a new borrower chasing PSLF has to be on RAP to keep the clock running. Our guide to Public Service Loan Forgiveness eligibility covers which jobs count.

How your payment is calculated

RAP uses your adjusted gross income, which is the income figure from your tax return. Your base payment is a percentage of that AGI, and the percentage climbs as income climbs.

Your annual AGI	Base payment
$10,000 or less	$10 per month ($120 a year)
$10,001 to $20,000	1% of AGI
$20,001 to $30,000	2% of AGI
$30,001 to $40,000	3% of AGI
$40,001 to $50,000	4% of AGI
Each additional $10,000	+1% of AGI
More than $100,000	10% of AGI

After you find the base payment, subtract $50 for each dependent you claim on your taxes. The payment never falls below the $10 floor.

Two worked examples show how it lands:

– You earn $45,000 with one child. Your bracket is 4% of AGI, or $1,800 a year, which is $150 a month. Subtract $50 for the dependent, and your payment is $100 a month. – You earn $80,000 with two children. Your bracket is 8% of AGI, or $6,400 a year, which is about $533 a month. Subtract $100 for two dependents, and your payment is about $433 a month.

If you are married and file jointly, both spouses’ AGI counts. If you file separately, your spouse’s income is left out. RAP is recertified every year, and it does not adjust for inflation, so your payment can rise over time as your income grows.

The interest and principal subsidies

RAP has two features that protect you from a balance that grows while you pay.

First, it kills negative amortization. If your monthly payment does not cover the interest that accrued that month, the government waives the leftover interest instead of adding it to your balance. Your balance will not balloon just because your payment is small.

Second, it guarantees principal reduction. If your payment chips away less than $50 of your principal in a month, the government applies up to $50 toward your principal for you. Every month, your balance moves down by at least a little.

The switch window and how to enroll

Borrowers keep hearing about a window to switch plans. The practical version is this: as SAVE and the older plans wind down, your servicer will send transition notices telling you what you are being moved to and by when. Do not ignore them. If you miss a deadline to pick a plan, you can be defaulted into one that costs you more or, worse, fall out of a repayment status entirely.

To enroll in RAP, submit an income-driven repayment application at studentaid.gov or through your loan servicer. You will verify your income, usually by letting the system pull your tax data directly, and you will recertify every year. If you are between the old plans and RAP, apply as soon as your servicer notice arrives rather than waiting for the deadline.

Mistakes that cost borrowers money

– Assuming unemployment means a $0 payment. It does not anymore. The $10 minimum applies even with no income, so budget for it. – Consolidating a Parent PLUS loan and expecting RAP to cover it. Rolling a Parent PLUS into a consolidation loan keeps it out of RAP. Check your loan types before you consolidate. – Staying on the standard plan while chasing PSLF. The standard plan does not build PSLF credit for new borrowers. If forgiveness is your goal, you have to be on RAP. – Skipping annual recertification. Miss it and your payment can jump to the full amount, and unpaid interest protections can lapse. Put the recertification date on your calendar.

Compare RAP against the older forgiveness math in our guide to income-driven repayment forgiveness before you lock in a plan.

FAQ

Do I qualify for RAP if I have Parent PLUS loans? No. Parent PLUS loans are not eligible for RAP, and a Direct Consolidation Loan that includes a Parent PLUS loan is also excluded. Parent borrowers need to look at other repayment options.

What documents do I need to enroll in RAP? You submit an income-driven repayment application and verify your adjusted gross income, usually by letting the system import your federal tax return data. You then recertify your income once a year.

How is my RAP payment calculated if I have no income? Your base payment is a percentage of your AGI, but there is a $10 monthly floor. Even a borrower with zero income owes at least $10 a month. Dependents reduce the payment by $50 each, but never below $10.

Can I still get Public Service Loan Forgiveness on RAP? Yes. RAP payments count toward the 120 payments needed for PSLF. New borrowers after July 1, 2026, generally must be on RAP for PSLF because the standard plan does not qualify.

What happened to the SAVE plan? SAVE ended and was replaced by RAP on July 1, 2026. Borrowers who were on SAVE are being transitioned by their servicers, and the remaining older plans, PAYE and ICR, are scheduled to end by July 1, 2028.