What Is the Repayment Assistance Plan (RAP)?

A major change is coming to federal student loans on July 1, 2026. On that date, the Department of Education will launch the Repayment Assistance Plan (RAP), a new income-driven repayment (IDR) option created by recent legislation. For some borrowers, RAP may offer lower payments and valuable interest protections. For others, especially borrowers already making progress toward IDR forgiveness under existing plans, switching to RAP could have important long-term consequences. Understanding how the new plan works before making any decisions can help you protect your repayment and forgiveness strategy.

What Is RAP?

The Repayment Assistance Plan (RAP) is a new federal income-driven repayment plan that will become available on July 1, 2026. Unlike existing plans that calculate payments based on discretionary income, RAP uses a percentage of a borrower’s Adjusted Gross Income (AGI) to determine monthly payments. Depending on income, payments generally range from 1% to 10% of AGI, with a minimum payment of $10 per month. Borrowers also receive a $50 monthly payment reduction for each dependent. Like other income-driven plans, RAP offers forgiveness of any remaining balance after a required repayment period. However, that repayment period is longer than all other current plans: borrowers must make payments for 30 years (360 months) before receiving forgiveness.

How RAP Differs from Existing IDR Plans

Several features distinguish RAP from previous IDR plans such as IBR, PAYE, ICR, and the soon-to-be eliminated SAVE plan. First, RAP uses total AGI rather than discretionary income when calculating payments. Depending on income level and family size, this may result in higher or lower payments than borrowers would see under other IDR plans. Second, RAP includes protections against balance growth. If your required payment does not fully cover monthly interest, the unpaid interest is waived rather than added to your balance. In addition, if your monthly payment reduces principal by less than $50, the government will provide a matching principal reduction to ensure at least $50 of principal is paid each month. This can make RAP a strong choice for borrowers who intend to pay off their loans rather than utilizing a forgiveness program. Finally, RAP's forgiveness timeline is 30 years, compared with the 20- or 25-year forgiveness periods available under existing IDR plans.

Who Will Use RAP?

Beginning July 1, 2026, borrowers who take out new federal student loans will be limited to RAP as their only income-driven repayment option. The one exception is borrowers with Parent PLUS loans, who will not have any income-driven options if they borrow after July 1. Existing borrowers who do not borrow again will generally retain access to other plans, including IBR, depending on their circumstances and future regulatory changes. RAP will also play a major role in the transition away from the SAVE plan. Current SAVE borrowers will have the opportunity to enroll in RAP once servicers begin implementing the SAVE wind-down process. You can learn more about the upcoming SAVE transition in our article here.

RAP and Public Service Loan Forgiveness (PSLF)

For borrowers pursuing Public Service Loan Forgiveness, RAP will be a qualifying repayment plan. Payments made under RAP can count toward the 120 qualifying payments required for PSLF, provided all other PSLF requirements are met. That means many public service workers may be able to use RAP without affecting their long-term PSLF eligibility. However, monthly payment amounts may differ from what they would have paid under other income-driven plans, making a personalized review worthwhile.

The Important Forgiveness Rule Most Borrowers Are Missing

One of the most significant aspects of RAP has received relatively little attention. Under final Department of Education regulations, forgiveness credit earned under RAP does not count toward forgiveness under other IDR options if a borrower later switches plans. Likewise, borrowers who have accumulated qualifying payments toward forgiveness under other IDR plans should understand that moving to RAP may effectively place them on a separate forgiveness timeline. For example, imagine a borrower who has already accumulated 200 qualifying payments of their 300 needed toward IBR forgiveness. If that borrower switches to RAP and spends one year on the new plan, they would now have 212 qualifying payments toward RAP forgiveness. However, if they then return to IBR, they would still have only 200 qualifying payments toward IBR forgiveness. The months spent in RAP would not advance their IBR forgiveness progress. For borrowers who are already well on their way toward 20- or 25-year forgiveness under IBR, this rule could significantly affect long-term strategy.

Should You Switch to RAP?

The answer depends on your goals. For some borrowers, RAP's interest protections, principal reduction benefits, and PSLF eligibility may make it an attractive option. For others, particularly borrowers who are already close to IDR forgiveness under IBR, remaining on their current plan may be more advantageous. There is no one-size-fits-all answer. The right choice depends on your payment history, income, loan balance, and forgiveness timeline.

The Bottom Line

RAP is more than just a replacement for SAVE. It creates a new repayment framework that will shape federal student loans for years to come. While the plan includes several borrower-friendly features, borrowers pursuing long-term forgiveness should pay close attention to how forgiveness credits are tracked before making a switch. Understanding these rules now can help prevent costly surprises later. If you are considering RAP, now is a good time to review your repayment strategy and forgiveness progress. The months leading up to July 1, 2026 may be the best opportunity to evaluate your options and make an informed decision.

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What Is the Repayment Assistance Plan (RAP)? How the New Student Loan Repayment Plan Works in 2026

What Is RAP?

How RAP Differs from Existing IDR Plans

Who Will Use RAP?

RAP and Public Service Loan Forgiveness (PSLF)

The Important Forgiveness Rule Most Borrowers Are Missing

Should You Switch to RAP?

The Bottom Line

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