The Repayment Assistance Plan (RAP) is the new federal income-driven repayment plan for Direct Loans. Any Direct Loan borrower with an eligible loan type can enroll now — online applications opened July 1, 2026 and enrollment stays open year-round. Under RAP, your monthly payment is based on your income (as low as $10 a month), reduced by $50 for each dependent, and any remaining balance is forgiven after 30 years of payments. RAP payments also count toward Public Service Loan Forgiveness for qualifying public-service borrowers.

Key Details

  • Program: Repayment Assistance Plan (RAP) — new federal income-driven repayment plan for Direct Loans
  • Status: Live now; online application opened July 1, 2026
  • Who can apply: Any Direct Loan borrower with an eligible loan type
  • Monthly payment: A percentage of your adjusted gross income, from as low as $10/month
  • Forgiveness: Remaining balance forgiven after 30 years (360 qualifying payments); counts toward PSLF after 120 payments for public-service borrowers
  • Deadline: Deadline: No deadline — enrollment is open year-round (rolling); apply any time at StudentAid.gov

How Your RAP Payment Is Calculated

Your monthly payment is a percentage of your adjusted gross income (AGI), divided by 12, using an official sliding scale: payments start at $120 a year for incomes of $10,000 or less and rise with income up to 10% of AGI for incomes above $100,000. Your monthly amount is then reduced by $50 for each dependent you claim on your federal tax return. The minimum monthly payment is $10. Borrowers who are married and file jointly use combined income; married filing separately uses only the borrower’s income.

Which Loans Qualify

Eligible: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS loans for graduate or professional students, and Direct Consolidation Loans that do not include a Parent PLUS loan. Not eligible: Parent PLUS loans, and Direct Consolidation Loans that include an underlying Parent PLUS loan.

See also  15 Best Law Schools in Indiana : Requirements, Scholarships

Balance Protections

  • Interest subsidy: unpaid interest remaining after your monthly payment is subsidized, so your balance does not grow just from interest.
  • Principal match: if a full, on-time payment does not reduce your principal by at least $50, the Secretary of Education makes a matching principal payment so the principal falls by at least the amount you paid (capped at $50).
  • Note: forgiven amounts under RAP may be treated as taxable income.

How to Apply for the Repayment Assistance Plan

  1. Go to StudentAid.gov and sign in with your FSA ID.
  2. Submit the income-driven repayment plan request and select the Repayment Assistance Plan.
  3. Authorize the release of your IRS tax information (or provide other income documentation).
  4. Include your spouse’s income information if married, and the number of dependents on your tax return.
  5. Submit — your loan servicer will confirm your enrollment and your first payment amount.

APPLY NOW FOR THE REPAYMENT ASSISTANCE PLAN

See also: RAP payments count toward PSLF, 2026 loan-landscape context, related aid

Frequently Asked Questions

What is the Education Department’s Repayment Assistance Plan?

RAP is the new federal income-driven repayment plan for Direct Loans. It sets your monthly payment from your income (as low as $10), protects your balance with interest subsidies, and forgives what is left after 30 years of payments.

See also  UNIDAR Outer Space Security Conference 2027 in Switzerland (

How do I apply for the Repayment Assistance Plan on StudentAid.gov?

Sign in at StudentAid.gov with your FSA ID, submit the income-driven repayment request, select RAP, and authorize your IRS tax-information release (plus spouse income and dependent count where applicable).

How much will I pay per month under RAP?

A percentage of your adjusted gross income on a sliding scale — $10 a month minimum — reduced by $50 for each dependent. Exact amounts depend on your income and household size.

Which student loans qualify for the Repayment Assistance Plan?

Direct Subsidized and Unsubsidized Loans, Direct PLUS loans for graduate or professional students, and Direct Consolidation Loans without a Parent PLUS loan. Parent PLUS loans do not qualify.

How long until my loans are forgiven under RAP?

After 30 years (360 qualifying monthly payments). For borrowers in qualifying public-service jobs, RAP payments also count toward Public Service Loan Forgiveness, which forgives the balance after 10 years (120 payments).