RAP puts your income in one of 11 brackets. There is no $0 payment

The Repayment Assistance Plan took effect July 1, 2026. If your federal loans were first disbursed on or after that date, it is your only income-driven option.

How the payment is calculated

RAP puts your full adjusted gross income into one of 11 brackets. Each bracket has a percentage, running from 1% at the lowest incomes to 10% at the highest. That percentage of your AGI is your annual payment.

Then two adjustments:

• Minus $50 a month for each dependent you claim
• A floor of $10 a month — there are no $0 payment months

And one thing that is absent: there is no cap. Under IBR, your payment could not exceed what you would pay on a 10-year standard plan. RAP has no such ceiling.

Who this changes things for

Lower incomes: the $10 floor replaces what could previously be a $0 payment. Small in dollars, but it means there is always something due.

Higher incomes: the missing cap is the significant part. Without the 10-year standard ceiling, a high earner can pay more under RAP than under the plan it replaced.

Households with dependents: the $50 per dependent deduction is a straight subtraction from the monthly figure, so it matters most when the calculated payment is small.

The trap in the transition

If your loans were disbursed before July 1, 2026 and you take out no additional federal loans, you keep access to legacy repayment plans.

Take out one new federal loan on or after that date and you lose them — you are limited to the Tiered Standard Repayment Plan or RAP. Going back to school and borrowing again is enough to trigger it.

This is a summary of the rule, not advice on your loans. Your servicer holds your actual balance, disbursement dates and plan eligibility.

Questions people ask