RAP Student Loan Calculator 2026
Compare the new RAP (Repayment Assistance Plan) with SAVE, IBR, and Standard repayment plans side by side. Enter your loan balance, income, and family size to see your monthly payment under each plan before the July 2026 transition takes effect.
SAVE vs RAP — What Changes in July 2026
The SAVE (Saving on a Valuable Education) plan is being replaced by the RAP (Repayment Assistance Plan) starting July 1, 2026. Under SAVE, borrowers could qualify for $0 monthly payments if their income was low enough, and payments were based on discretionary income — the amount you earn above 225% of the federal poverty level. RAP fundamentally changes this by basing payments on your full adjusted gross income (AGI) and eliminating $0 payment months entirely. The minimum payment under RAP is $10 per month. If you are currently enrolled in SAVE, you will be automatically transitioned to RAP unless you choose a different plan before the deadline.
How RAP Payments Are Calculated
RAP uses a stepped formula based on your full AGI rather than discretionary income. Every borrower pays at least $10 per month. Above the federal poverty level for your family size, your payment increases by 1% of your income for every $10,000 earned above that threshold. For example, if the poverty level for a family of four is $32,150 and you earn $52,150, that is $20,000 above the threshold, so your payment would be 2% of your income (1% for each $10,000 above poverty). This progressive approach means lower earners pay closer to the $10 minimum while higher earners pay proportionally more.
The 1% Step Rule Explained
The 1% step rule is the core mechanism of RAP. For every $10,000 your AGI exceeds the federal poverty level for your family size, your required payment percentage increases by 1% of your full income. This creates a graduated payment structure. At exactly the poverty level or below, you pay the $10 minimum. At $10,000 above poverty, you pay 1% of your total AGI. At $20,000 above, 2% of AGI. This continues upward with no stated cap in the current legislation. The step rule replaces the flat 5% or 10% of discretionary income used in SAVE and IBR, making the calculation simpler but often resulting in higher payments for middle-income borrowers.
Who Pays More Under RAP vs SAVE
Middle-income borrowers will generally pay more under RAP than they did under SAVE. Under SAVE, someone earning $45,000 with a family of one could have a very low payment because 225% of the poverty level ($35,213) left only $9,787 in discretionary income, of which just 5% was owed monthly. Under RAP, that same borrower pays based on their full $45,000 income using the step rule. Low-income borrowers who previously qualified for $0 payments will now owe at least $10 per month. However, very high-income borrowers may pay less under RAP than under Standard repayment, since RAP caps at a percentage of income rather than a fixed amortization schedule. Borrowers with graduate loans are especially impacted since SAVE used 10% of discretionary income for grad loans while RAP applies the same step formula regardless of loan type.
RAP Forgiveness Timeline and Eligibility
Under RAP, remaining loan balances are forgiven after 30 years of qualifying payments, regardless of whether you borrowed for undergraduate or graduate education. This is a significant change from SAVE, which offered forgiveness after 20 years for undergrad loans and 25 years for grad loans. The extended timeline means borrowers will make payments for 5 to 10 additional years before reaching forgiveness. However, RAP does include a borrower-friendly provision: interest does not capitalize during periods of deferment or forbearance. If your payments do not cover the monthly interest, the unpaid interest will not be added to your principal balance, preventing your loan from growing while you are in the program.
How to Apply for RAP & What Happens to SAVE Borrowers
If you are currently on SAVE, you do not need to take action — the U.S. Department of Education will automatically transition existing SAVE borrowers to RAP on July 1, 2026. If you want to switch plans before that date (to IBR, PAYE, or the Standard 10-year plan), submit an Income-Driven Repayment Plan request through your loan servicer's portal or directly at the studentaid.gov income-driven repayment hub. Be ready with your most recent federal tax return (for AGI verification), family size, and a list of all your federal student loans. New borrowers after July 1, 2026 will only have RAP and the Standard Plan as choices for income-driven repayment — IBR and PAYE close to new enrollees on that date.
Last updated: July 2026 · RAP rules per the One Big Beautiful Bill Act of 2025 · poverty thresholds per HHS 2026 federal poverty guidelines.
Real 2026 RAP Monthly Payment Examples by Income
Concrete numbers from the RAP student loan calculator help you sanity-check the estimate above before committing to the plan. All examples use the 2026 HHS poverty guideline for a family of one ($15,650) and the 1% step rule per $10,000 of AGI above that threshold. A single borrower earning $32,000 (~$16,350 above poverty, 1 step) pays roughly $27/month (1% × $32,000 ÷ 12). At $45,000 AGI (~$29,350 above, 2 steps) the payment jumps to about $75/month. At $60,000 AGI (~$44,350 above, 4 steps) payments hit roughly $200/month. Family of four with $75,000 AGI (~$42,850 above the $32,150 threshold, 4 steps) pays about $250/month. Compare each number to the SAVE payment in the calculator above — most middle-income borrowers see 2-4x the SAVE payment under RAP. Per the Federal Student Aid announcements page, the RAP transition schedule is being enforced by the U.S. Department of Education without exception windows. Updated 2026-07-27.
Frequently Asked Questions
What is the RAP student loan plan?
RAP (Repayment Assistance Plan) is the new federal student loan repayment plan replacing SAVE starting July 1, 2026. It bases payments on your full adjusted gross income using a 1% step rule per $10,000 earned above the federal poverty level, with a minimum payment of $10 per month and forgiveness after 30 years.
When does the SAVE plan end?
The SAVE (Saving on a Valuable Education) plan ends on July 1, 2026. Borrowers currently enrolled in SAVE will be automatically transitioned to RAP unless they select a different repayment plan before that date.
How is the RAP payment calculated?
RAP payments use the 1% step rule. For every $10,000 your AGI exceeds the federal poverty level for your family size, your payment percentage increases by 1% of your total income. At or below the poverty level, you pay the $10/month minimum. The formula is: steps = floor((AGI - poverty level) / $10,000), then monthly payment = (steps% x AGI) / 12.
Can I still get $0 payments under RAP?
No. Under RAP, the minimum monthly payment is $10 regardless of income. This is a major change from SAVE, which allowed $0 payments for borrowers with income below 225% of the poverty level. Even if your income is at or below the poverty line, you will owe at least $10 per month under RAP.
How long until my loans are forgiven under RAP?
Under RAP, remaining loan balances are forgiven after 30 years of qualifying payments. This is longer than SAVE, which offered forgiveness after 20 years for undergraduate loans and 25 years for graduate loans. The extended timeline applies to all borrowers regardless of whether their loans are for undergraduate or graduate education.
Should I switch from IBR to RAP?
It depends on your income and loan balance. Use this calculator to compare both plans. Generally, borrowers with lower incomes may find IBR results in lower monthly payments since IBR uses discretionary income (AGI minus 150% of poverty) while RAP uses full AGI. Higher-income borrowers with large balances may benefit from RAP forgiveness after 30 years versus IBR 20-year forgiveness with potentially higher monthly payments under IBR.
Does RAP count toward Public Service Loan Forgiveness (PSLF)?
Yes. RAP qualifies as an income-driven repayment plan for PSLF purposes, so the 120 qualifying monthly payments required for PSLF can be made under RAP. Public-sector and qualifying non-profit borrowers should keep submitting the PSLF Employer Certification annually. The $10 RAP minimum still counts as one qualifying payment for that month, even if your income would have produced a $0 payment under SAVE.
Do I have to apply for RAP if I am already on SAVE?
No. The U.S. Department of Education has stated that all SAVE borrowers will be automatically migrated to RAP on July 1, 2026. You only need to act if you want to switch to a different plan (IBR, PAYE, Extended, or Standard) before that date — submit the request through your loan servicer or at studentaid.gov. New borrowers after July 1, 2026 will only have RAP and the Standard Plan as choices for federal IDR.
What is a typical monthly RAP payment for a $50,000 salary in 2026?
For a single borrower earning $50,000 with a 2026 poverty line of $15,650, AGI exceeds poverty by $34,350 — that is 3 completed $10,000 steps, so the payment rate is 3% of full AGI. Monthly RAP payment = (3% × $50,000) ÷ 12 = about $125/month. This is roughly 2.5x what SAVE would have charged the same borrower on discretionary income. Use the RAP student loan calculator above with your actual family size and AGI to get your exact number.
Can I refinance federal loans to private if the RAP payment is too high?
Yes — but refinancing federal loans to private loans permanently gives up all federal protections: RAP, IBR, PSLF forgiveness, deferment, forbearance, and income-driven forgiveness after 30 years. Private refinancing may offer a lower interest rate for high-income borrowers with 750+ FICO and stable income, but if your income drops in the future you have no income-based safety net. Consumer Financial Protection Bureau (CFPB) recommends staying on federal repayment unless you never intend to use these protections.