How RAP payments are calculated
Your annual payment is a percentage of your adjusted gross income (AGI), rising one point for each $10,000 of income: 1% under $10,000, 2% from $10,000 to $20,000, and so on, capped at 10% for $90,000 and above. Divide by 12 for the monthly amount, subtract $50 a month for each dependent, and the result is your payment, with a $10 floor.
Worked example
AGI $45,000, 2 dependents, $30,000 balance at 6% interest.
- Tier: 5% of AGI = $2,250 a year.
- Monthly before dependents: $2,250 / 12 = $187.50.
- Minus $50 x 2 dependents: monthly payment = $87.50.
- Monthly interest: $30,000 x 6% / 12 = $150.
- Unpaid interest $62.50 waived; the balance cannot grow from unpaid interest.
The interest waiver
Each month, any interest your payment does not cover is waived, not added to your balance. As long as you make your RAP payment, unpaid interest can never capitalize and grow what you owe. This is the plan's main protection for borrowers whose payments are smaller than their interest.
The $50 principal match
If your payment covers the monthly interest but is less than the interest plus $50, the government contributes the difference, up to $50, straight toward your principal. It only applies when the interest is fully covered, so it rewards payments that at least keep up with interest.
Forgiveness after 360 payments
After 360 qualifying monthly payments (30 years), any remaining balance is forgiven. Because of the interest waiver and the principal match, RAP is designed so that steady payments actually shrink the balance over time instead of treading water.
Who can use RAP
RAP covers federal Direct Loans and launched on July 1, 2026, replacing the SAVE plan. Borrowers are being transitioned by their servicers. Confirm your eligibility, especially for Parent PLUS or consolidated loans, with your loan servicer before relying on these numbers.
More loan tools
To see a standard amortization schedule for any loan, use the loan payment calculator.
This calculator is an estimate based on the published RAP formula, not an official payment quote. Your servicer sets the actual payment; confirm with them before making decisions.