Repayment Assistance Plan (RAP).

In plain English

The Repayment Assistance Plan (RAP) is an income-driven repayment plan created by the 2025 law P.L. 119-21 (sometimes called the One Big Beautiful Bill). "Income-driven" means your monthly payment is based on what you earn, not a fixed amount. RAP scales payments from a $10 per month floor for the lowest earners up to 10 percent of adjusted gross income for higher earners, and it guarantees your balance drops at least $50 each month through a government subsidy. It is scheduled to launch July 1, 2026, with enrollment on studentaid.gov from that date. Any remaining balance is forgiven after 30 years of payments. Parent PLUS loans are not eligible for RAP.

01Why it matters

For anyone taking out federal loans on or after July 1, 2026, RAP and the new standard plan are the only two repayment options, so it directly shapes what you will owe each month. The $50 balance guarantee also means your loan no longer grows while you pay.

02The math, step by step

Starting July 1, 2026, a borrower enrolls in RAP. If they earn very little, the payment is as low as $10 per month; as income rises, the payment grows toward 10 percent of adjusted gross income, and the balance still drops at least $50 monthly thanks to the subsidy.

03What this is NOT

04Receipts

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