{"id":89350,"date":"2026-04-22T16:58:36","date_gmt":"2026-04-22T16:58:36","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/04\/22\/repayment-assistance-plan-rap-student-loan-calculator\/"},"modified":"2026-04-22T17:07:40","modified_gmt":"2026-04-22T17:07:40","slug":"repayment-assistance-plan-rap-student-loan-calculator","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/04\/22\/repayment-assistance-plan-rap-student-loan-calculator\/","title":{"rendered":"Repayment Assistance Plan (RAP) Student Loan Calculator"},"content":{"rendered":"

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  • The Repayment Assistance Plan (RAP) is set to replace the current income-driven repayment options for federal student loans.<\/li>\n
  • Monthly payments under RAP scale with income, ranging from a minimum of $10 to 10% of adjusted gross income, with a deduction for dependents.<\/li>\n
  • The scheme has a maximum loan waiver limit of 30 years and avoids negative amortization through monthly interest subsidy and principal support.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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    Check out our new student loan calculator that helps borrowers estimate monthly payments under the Repayment Assistance Plan (RAP), a key provision of the recently passed bill to redesign student loan repayment. <\/p>\n

    The scheme replaces existing income-driven schemes such as IBR, PAYE and ICR for future borrowers and offers a standardized approach that links payments directly to adjusted gross income (AGI).<\/p>\n

    The new RAP formula moves away from the existing method of calculating discretionary income and replaces it with an income-tier structure. Borrowers pay a set percentage of their AGI, with payments capped at 10% for those making more than $100,000 annually. Unlike earlier plans, RAP introduces a flat $10 monthly payment for borrowers making $10,000 or less.<\/p>\n

    RAP is only one of two schemes available to future borrowers (with loans after July 1, 2026). The second is a new standard repayment plan.<\/p>\n

    To make these changes easier to understand, our new calculator allows borrowers to see their estimated monthly payments under RAP. Check out our other student loan calculator here.<\/p>\n<\/div>\n

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    Repayment Assistance Plan (RAP) Calculator <\/h2>\n

    Here is the RAP calculator:<\/p>\n<\/div>\n

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    How does the RAP formula work?<\/h2>\n

    RAP payments are based on annual income bracket (based on adjusted gross income or AGI):<\/p>\n

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    • AGI \u2264 $10,000: <\/strong>Flat payment of $120\/year ($10\/month)<\/li>\n
    • $10,001-$20,000: <\/strong>1% <\/li>\n
    • $20,001-$30,000: <\/strong>2% <\/li>\n
    • $30,001-$40,000: <\/strong>3% <\/li>\n
    • $40,001-$50,000:<\/strong> 4%<\/li>\n
    • $50,001-$60,000:<\/strong> 5%<\/li>\n
    • $60,001-$70,000:<\/strong> 6% <\/li>\n
    • $70,001-$80,000: <\/strong>7%<\/li>\n
    • $80,001-$90,000:<\/strong> 8%<\/li>\n
    • $90,001-$100,000:<\/strong> 9%<\/li>\n
    • AGI > $100,000:<\/strong> 10% of AGI<\/li>\n<\/ul>\n

      To determine the borrower’s monthly payment, the base payment is divided by 12 and adjusted by subtracting $50 for each dependent claimed on the borrower’s tax return.<\/p>\n

      If the calculation ends up being less than $10 per month, the borrower must pay a minimum of $10\/month.<\/p>\n

      Married Borrower: <\/strong>Your AGI will be based on your tax filing status. If you file jointly, this is your joint AGI. You file separately if you are MFS AGI. For dependents and MFS, the dependent must be claimed on your tax return. Note that the new bill imposes several other penalties on MFS. Please check with a tax professional before changing your tax filing status.<\/p>\n

      Example:<\/strong><\/p>\n

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      • A borrower with an AGI of $25,000 and two children would pay $10\/month.<\/li>\n
      • A borrower with an AGI of $60,000 and no dependents would pay $250\/month.<\/li>\n
      • A borrower with an AGI of $120,000 and one child pays $950\/month.<\/li>\n<\/ul>\n<\/div>\n
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        Comparing RAP with current IDR schemes<\/h2>\n

        Unlike RAP, existing income-driven repayment (IDR) plans such as IBR, PAY, and ICR depend on the borrower’s discretionary income, which is calculated using federal poverty guidelines. For example, PAYE requires 10% of discretionary income to be above 150% of the poverty level. This method can provide lower monthly payments for low-income borrowers, but the calculations can be confusing.<\/p>\n

        RAP simplifies this process with restrictions based on income levels and automatic interest forgiveness for certain borrowers. Although it imposes a longer maximum repayment period (30 years), it eliminates the risk of negative amortization by canceling the unpaid interest every month.<\/p>\n

        IBR and PAYE offer forgiveness after 20 or 25 years, depending on the borrower’s loan type and their repayment schedule. RAP 360 standardizes monthly payments or forgiveness over 30 years, but offers a consistent structure across income levels.<\/p>\n

        From a monthly payment perspective, using the examples above, what a borrower on the IBR would pay today (new IBR):<\/p>\n

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        • A borrower with an AGI of $25,000 and two children would pay $0\/month on IBR.<\/li>\n
        • A borrower with an AGI of $60,000 and no dependents would pay $312\/month on the IBR.<\/li>\n
        • A borrower with an AGI of $120,00 and one child would pay $745 per month on the IBR.<\/li>\n<\/ul>\n

          As you can see, RAP will benefit lower-income borrowers, but it will be more expensive for higher-income borrowers. That is why there are both winners and losers in this proposal.<\/p>\n

          See the full RAP vs modified IBR analysis.<\/p>\n<\/div>\n

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          What do borrowers need to know?<\/h2>\n

          Our RAP calculator is designed to help borrowers estimate their payments under the new structure, which will go live in 2026. Those making less than $30,000 may see minimal changes, while middle- and upper-income borrowers may see larger monthly payments.<\/p>\n

          Borrowers who start repayments before July 1, 2026 can still use the existing old and new IBR scheme, and the revised version removes the financial hardship test. Those with SAVE tolerances will be moved to the RAP plan at some point in the near future.<\/p>\n

          Although the RAP offer provides stability, it may not provide the lowest possible payment for every borrower. Losing other IDR options reduces flexibility.<\/p>\n

          Hopefully, the calculator helps borrowers understand these trade-offs and make comparisons based on their specific income and family circumstances.<\/p>\n

          Don’t miss these other stories:<\/strong><\/p>\n<\/div>\n

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