The 2026 student loan landscape has shifted. With the implementation of the One Big Beautiful Bill Act (OBBBA), the new Repayment Assistance Plan (RAP) has officially replaced previous options like the SAVE and PAYE plans. If you are a new borrower after July 1, 2026, or an existing borrower looking for a lower monthly payment, understanding the RAP is essential to managing your debt.
What is the Repayment Assistance Plan (RAP)?
The RAP is the primary Income-Driven Repayment (IDR) program for 2026. Unlike older plans that calculated payments based on "discretionary income," RAP uses your Adjusted Gross Income (AGI) directly, with a sliding scale to keep payments affordable.
Key Features of RAP 2026:
- Sliding Scale Payments: 1% to 10% of your AGI.
- Low-Income Protection: If your AGI is under $10,000, your payment is fixed at $10/month.
- Interest Subsidy: The government covers 100% of unpaid monthly interest, so your balance never grows.
- Principal Subsidy: If your payment doesn't cover $50 of your principal, the government will chip in to ensure your balance actually goes down.
- 30-Year Forgiveness: Any remaining balance is forgiven after 360 qualifying monthly payments.
How RAP Compares to Previous Plans
For many, RAP is more expensive than the former SAVE plan but offers better protection against balance growth. Here is a quick comparison:
| Feature | New RAP (2026) | Old SAVE / PAYE |
|---|---|---|
| Minimum Payment | $10 | $0 |
| Forgiveness Period | 30 Years | 20–25 Years |
| Dependent Credit | $50 off per child | Poverty Line Adjustment |
| Interest Subsidy | 100% (No growth) | Varies by plan |
How to Apply for RAP
To enroll, log in to the StudentAid.gov dashboard. You must provide consent for the IRS to share your tax data directly with the Department of Education. For those who need to estimate their new monthly bill before applying, you can use this Repayment Assistance Plan (RAP) Calculator to see your 2026 rates.