The Repayment Assistance Plan (RAP) is an income-driven repayment plan available for enrollment starting July 1, 2026. All Direct Loans, excluding Parent PLUS loans and Direct Consolidation Loans with underlying Parent PLUS loans, are eligible for RAP.
If you choose to enroll your loans in RAP, all eligible Direct Loans must be repaid under RAP, unless a borrower has loans that don’t qualify for RAP, such as FFEL loans.
The remainder of your loans can be forgiven after 30 years of making payments in RAP. The amount that’s forgiven may be taxed as income. Full, on-time payments made under RAP, the Tiered Standard plan, the legacy IDR plans, the legacy Standard Repayment plan, and time spent in economic hardship deferment all count toward RAP forgiveness.
Calculating RAP Payments
Monthly payments under RAP equal one-twelfth of 1%-10% of total income. For borrowers who file separately, only the adjusted gross income (AGI) from their return will be used, and only the dependents claimed on their tax return will be factored into the monthly payment.
Interest Subsidy
Any interest not covered by the monthly payment is eliminated on subsidized and unsubsidized loans. In other words, the loan balance won't accrue due to unpaid interest. The subsidy is only available when a full, on-time payment is made, and only for interest that accrues after enrollment in RAP.
Matching Principal Payment
For principal payments of less than $50, RAP provides matching principal payments to reduce the principal balance by at least $50.