Repayment Assistance Plan (RAP) starts July 2026 replacing SAVE. Compute monthly payment under RAP, IBR, PAYE, and Standard. Compare forgiveness pathway, PSLF eligibility, and total interest cost.
Detailed instructions, formula notes, and US-context guidance shown in the calculator above.
Disclaimer: Estimate only. Consult a qualified professional for decisions with major financial, legal, or health consequences.
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Calculator information
📋 How to use this calculator
- Enter your Adjusted Gross Income (AGI) from last year's tax return.
- Enter family size (you + spouse if filing jointly + dependents).
- Enter total federal student loan balance and weighted average interest rate.
- Compare monthly payment under RAP (new July 2026), PAYE, legacy IBR, and Standard 10-year.
- PSLF eligibility: ANY of these plans counts toward 120 qualifying payments — choose lowest payment if pursuing PSLF.
🧮 Repayment Assistance Plan (RAP, effective July 2026)
RAP_monthly = max($10, AGI x Tier_pct/12 - $50 x (family_size - 1)/12)
- AGI bands → Tier_pct: <$10K=1%, $10-20K=2%, $20-30K=3%, $30-40K=4%, $40-60K=5%, $60-80K=6%, $80-100K=7%, $100-150K=8%, $150K+=10%
- $10 minimum monthly payment (even for $0 AGI)
- Family size discount: $50/yr per additional household member
- Forgiveness timeline: 30 years (vs PAYE's 20, IBR's 20-25)
- PSLF: 10 years (120 qualifying payments) — RAP payments qualify
RAP replaces SAVE (struck down by courts March 2025). Income-driven plans grandfathered: existing IBR, PAYE, ICR borrowers can stay until forgiveness. New borrowers after July 2026 default to RAP. PAYE/ICR closed to new enrollees.
💡 Worked example: Teacher with $65K AGI, $58K loan balance, family of 3
Given:- AGI: $65,000
- Family size: 3 (married + 1 child)
- Loan balance: $58,000
- Interest rate: 6.5%
- PSLF eligible (public school teacher)
Steps:- RAP tier at $65K AGI: 6% band
- RAP gross: $65,000 x 6% = $3,900/yr
- Family discount: $50 x 2 = $100/yr
- RAP annual: $3,800 → $317/month
- PAYE/IBR-2014: discretionary income (AGI - 150% FPL) = $65,000 - $39,375 = $25,625 x 10% = $213/month
- Standard 10-year: $658/month (full amortization)
Result: PAYE saves $104/mo vs RAP for this teacher. Either qualifies for PSLF — 120 qualifying payments at $213-$317/month means $25,560-$38,040 paid before forgiveness of remaining balance.
❓ Frequently asked questions
Should I switch from SAVE to RAP immediately?
SAVE is no longer accepting new enrollments (court-blocked since March 2025). Existing SAVE borrowers transition to RAP automatically on July 1, 2026 unless they enroll in IBR/PAYE/ICR earlier. Compare payments: for higher-income borrowers ($60K+), RAP is often LOWER than IBR (10% discretionary). For lower-income borrowers, PAYE may be lower than RAP. Run both calcs.
Does RAP qualify for PSLF?
Yes. Any income-driven plan (RAP, IBR, PAYE, ICR) counts toward the 120 qualifying payments for PSLF. Standard 10-year ALSO qualifies but if you finish in 120 months you have nothing to forgive — IDR is preferred for PSLF because the lower payments leave more balance for forgiveness at month 121.
What's the deal with the 30-year forgiveness timeline?
RAP forgives any remaining balance after 30 years of qualifying payments. That's longer than PAYE (20) and IBR-2014 (20). The trade-off: RAP's $10 minimum payment is lower than PAYE's $0 minimum at $0 income — RAP guarantees SOME payment every month. For borrowers who'd reliably have $0 PAYE payments for years, PAYE's 20-year clock is much better than RAP's 30-year. For higher-income borrowers, the timeline difference rarely matters because they pay off normally before forgiveness.
Is the forgiven balance taxed as income?
Federal: NO for PSLF (always tax-free). For RAP/IBR/PAYE forgiveness at 20-30 years, the American Rescue Plan exclusion from income runs through 2025. After 2025, default treatment is taxable — but OBBBA extended the exclusion through 2028. After 2028, Congress must act or forgiveness becomes taxable. State tax varies — some states tax forgiveness even when federal doesn't.
I make $200K. What plan should I pick?
At $200K AGI, RAP is 10% tier = $20K/year = $1,667/month. That's likely close to or exceeding your Standard 10-year payment, defeating the purpose of IDR. Run the Standard 10-year calc — if it's lower or close, take Standard. If you're pursuing PSLF, take whichever IDR plan gives the lowest payment (usually PAYE at 10% of $200K-$39K discretionary = $1,342/month) and let the higher remaining balance forgive at month 121.
📚 Sources & references
Last updated: May 23, 2026