RAP Student Loan Calculator

To use this RAP student loan calculator, enter the following four pieces of information:

1. Adjusted Gross Income (AGI): This is your gross income minus above-the-line deductions, found on Line 11 of your federal tax return (Form 1040). If you are married and file jointly, use your combined household AGI. If you are married but file separately, use only your own AGI.
2. Family Size: Count yourself, your spouse (if married, regardless of filing status), and all dependents you claim on your taxes. A larger family size raises your Federal Poverty Level threshold, which can significantly lower your monthly payment.
3. Student Loan Balance: Enter the total outstanding balance of your federal direct loans. Find this by logging into studentaid.gov, selecting My Aid, then View Loan Details. If you have multiple loans, enter the combined total.
4. Annual Interest Rate: Enter your loan's interest rate. For multiple loans with different rates, use a weighted average: multiply each loan's balance by its rate, add them together, and divide by the total balance.

The calculator instantly shows your estimated monthly RAP payment, how it compares to the standard 10-year payment, your income as a percentage of the Federal Poverty Level, and the estimated balance that would be forgiven after 30 years if your income stays constant. Use the chart to visualize how your balance changes over time under RAP versus standard repayment. Remember: this calculator uses a fixed income assumption — in reality, income recertification happens annually and payments will change as your income changes.

The Repayment Assistance Plan (RAP) is a new federal income-driven repayment (IDR) program scheduled to launch on July 1, 2026. It was created by Congress as part of broader student loan legislation to replace the SAVE plan, which was struck down by federal courts. RAP is designed to provide affordable monthly payments to federal student loan borrowers whose income is low relative to their debt, with a guarantee of loan forgiveness after 30 years of qualifying payments.

Under RAP, your monthly payment is calculated as a percentage of your Adjusted Gross Income (AGI) based on where your income falls relative to the Federal Poverty Level (FPL) for your family size. The FPL is a government benchmark updated annually by the Department of Health and Human Services. A higher family size raises your FPL threshold, which generally lowers your payment — a married borrower with two children will have a higher FPL than a single borrower, reducing their payment percentage.

Unlike previous plans like REPAYE and SAVE, RAP sets a minimum monthly payment of $10 — there are no $0/month payments. This reflects a policy shift toward requiring all borrowers to contribute something toward their loans. The maximum payment is capped at the standard 10-year amortization payment, so borrowers with higher incomes will not pay more than they would under the standard plan.

RAP applies to Direct Subsidized and Unsubsidized Loans, as well as Direct Graduate PLUS Loans. Parent PLUS Loans are not directly eligible but can potentially qualify through consolidation. Private student loans are excluded from all federal IDR programs. Borrowers currently enrolled in SAVE will automatically be transitioned to RAP when it launches — no immediate action is typically required, though borrowers can choose to switch to a different plan.

RAP uses a tiered income percentage structure based on your AGI relative to the Federal Poverty Level (FPL) for your family size:

Step 1: Calculate your FPL

FPL = $15,650 + ($5,380 × (Family Size − 1))

Step 2: Calculate your income-to-FPL ratio

FPL% = (AGI ÷ FPL) × 100

Step 3: Apply the payment tier

The resulting payment is subject to a floor of $10/month and a ceiling equal to the standard 10-year amortization payment:

Monthly Payment = MIN(MAX(Tier Payment, $10), Standard 10-Year Payment)

The standard 10-year payment is calculated using the amortization formula:

M = P × [r(1+r)120] ÷ [(1+r)120 − 1]

Where M is the monthly payment, P is the loan balance, and r is the annual rate divided by 12.

Example 1 — Low-Income Single Borrower: Maria is a recent graduate earning $28,000 AGI (single, family size 1). The 2026 FPL for 1 person is $15,650, so her income is 179% of FPL. Under RAP's 150–250% tier, her annual payment is 1% of $28,000 = $280, or $23.33/month. The standard 10-year payment on her $28,000 loan at 6.53% would be $316/month. RAP saves Maria $293/month. However, her $23.33 payment likely does not cover the monthly interest (~$152 at 6.53%), so her balance may grow over time. After 30 years, any remaining balance is forgiven — potentially $40,000–$60,000 depending on balance growth.

Example 2 — Middle-Income Family: David and Sarah file jointly with a combined AGI of $90,000 and two children (family size 4). The 2026 FPL for a family of 4 is $32,790. Their income is 274% of FPL, placing them in the 250–400% tier. Annual payment = 2% of $90,000 = $1,800, or $150/month. On $45,000 in loans at 6.53%, the standard 10-year payment would be $509/month. RAP saves this family $359/month. At $150/month, they are paying more than the monthly interest (~$245), so their balance will slowly decline. They may pay off fully before 30 years, or receive modest forgiveness.

Example 3 — Higher-Income Single Borrower: James earns $95,000 AGI as a software engineer (family size 1). His income is 607% of FPL (above 550%). Under the 550–700% tier, his annual payment = 5% of $95,000 = $4,750, or $395.83/month. The standard 10-year payment on his $35,000 grad loan at 8.08% would be $425/month. RAP saves James only $29/month and he will likely pay off his loans in full before 30 years with minimal forgiveness. For high earners, standard or extended repayment may be just as efficient as RAP.