Information checked: 2026-09-09 · Maintenance label: Event-driven
The income-driven repayment landscape changed substantially in 2026, and a comparison built on the old plan list will point you at plans that no longer exist.
The SAVE plan ended by court order on 10 March 2026. The Repayment Assistance Plan became available on 1 July 2026. Borrowers who were on SAVE were notified between 1 July and 15 August 2026 and given 90 days to select an alternative.
If you were on SAVE and have not chosen, that deadline is the most urgent item here. Everything else can be optimised later.
Key takeaway
RAP calculates payments as a percentage of adjusted gross income rising from 1% to 10% across income bands, divided by twelve, reduced by $50 per dependent, with a $10 monthly minimum. Unpaid interest is subsidised, forgiveness comes at 30 years, and PSLF-eligible borrowers reach forgiveness at 10. IBR remains available and no longer requires a partial financial hardship for the affected loan cohort.
Table of contents
- What changed, and when
- How a RAP payment is calculated
- Interest and forgiveness
- Eligibility, and the exclusion to check first
- How to compare properly
- Frequently asked questions
- Summary
Related guides
- PSLF Eligibility 2026: Employer, Loan, and Payment Requirements — When ten years, not thirty, is the finish line
- Student Loan Interest Deduction 2026: Income Limits and Form 1098-E — The deduction available on the interest you pay
What changed, and when
| Date | What happened |
|---|---|
| 10 March 2026 | The SAVE plan ended by court order |
| 1 July 2026 | The Repayment Assistance Plan became available to apply for at StudentAid.gov |
| 1 July to 15 August 2026 | SAVE borrowers were notified, with 90 days to select an alternative plan |
The One Big Beautiful Bill Act also removed the partial financial hardship requirement for entering Income-Based Repayment, effective on enactment. That expanded IBR access for borrowers with loans made between 1 July 2014 and 1 July 2026.
Run your own numbersFederal Student Aid ›Apply for a repayment plan, certify PSLF employment, and use the official loan simulator with your actual balances instead of a generic calculator.How a RAP payment is calculated
RAP uses adjusted gross income against a band table. The annual figure is divided by twelve, then reduced by $50 for each dependent claimed on your tax return, with a minimum of $10 per month.
| Adjusted gross income | Annual amount |
|---|---|
| $10,000 or less | $120 |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% of AGI |
| $30,001 to $40,000 | 3% of AGI |
| $40,001 to $50,000 | 4% of AGI |
| $50,001 to $60,000 | 5% of AGI |
| $60,001 to $70,000 | 6% of AGI |
| $70,001 to $80,000 | 7% of AGI |
| $80,001 to $90,000 | 8% of AGI |
| $90,001 to $100,000 | 9% of AGI |
| Over $100,000 | 10% of AGI |
Worked example of the mechanics, not of your own case: an adjusted gross income of $45,000 sits in the 4% band, giving $1,800 for the year, or $150 a month. Two dependents reduce that by $100, to $50 a month.
Because the bands are steps rather than a smooth curve, a modest pay rise that crosses a boundary can move your payment more than you would expect. Recheck after any significant income change.
Interest and forgiveness
If your monthly payment is less than the interest accruing that month, the interest left unpaid after the payment is subsidised. That addresses the balance-growth problem that made older plans discouraging for low-income borrowers.
Outstanding balances are forgiven after 30 years of qualifying payments. Borrowers eligible for Public Service Loan Forgiveness reach forgiveness after 10 years, and RAP payments count toward it.
Eligibility, and the exclusion to check first
RAP is available to Direct Loan borrowers. Eligible loans include Direct Subsidized and Unsubsidized loans, Direct PLUS loans for graduate students, and Direct Consolidation loans that do not include a Parent PLUS loan.
That exclusion is the first thing to verify if you have ever consolidated. A consolidation loan containing a Parent PLUS loan falls outside RAP entirely, which changes the comparison rather than merely adjusting it.
How to compare properly
- Confirm your loan types at StudentAid.gov. Eligibility turns on them, not on your income.
- If you were on SAVE, check whether your 90-day selection window has passed, and act on it before anything else.
- Run your actual balances through the official loan simulator rather than a generic calculator built on the old plan list.
- If you work in public service, weigh the 10-year PSLF horizon against monthly affordability. When forgiveness is the goal, the lowest qualifying payment is usually the better choice.
- Recheck after any significant income change, because the band structure amplifies small moves.
For a borrower not pursuing PSLF the comparison is between affordability now and total interest paid over up to 30 years. Those two goals frequently point at different plans, and there is no answer that is right for everyone.
Run your own numbersFederal Student Aid ›Apply for a repayment plan, certify PSLF employment, and use the official loan simulator with your actual balances instead of a generic calculator.Frequently asked questions
What replaced SAVE?
SAVE ended by court order on 10 March 2026. The Repayment Assistance Plan became available on 1 July 2026, and IBR remains available.
What is the minimum RAP payment?
$10 per month, after the band calculation and the $50 per dependent reduction.
Does RAP count toward PSLF?
Yes, if all other eligibility criteria are met, with forgiveness after 10 years for PSLF-eligible borrowers.
Are Parent PLUS loans eligible?
A Direct Consolidation loan that includes a Parent PLUS loan is not eligible for RAP. Check your loan composition before assuming.
Do I still need a partial financial hardship for IBR?
The requirement was removed on enactment of the One Big Beautiful Bill Act, expanding IBR access for borrowers with loans made between 1 July 2014 and 1 July 2026.
Summary
If you were on SAVE, the selection deadline is the urgent item. A missed window cannot be optimised later; everything else can.
RAP is a straightforward income-band calculation with an interest subsidy, 30-year forgiveness and PSLF credit at 10 years. Confirm your loan types first, because a consolidation containing a Parent PLUS loan falls outside it.
- Federal Student Aid servicer information centre, Repayment Assistance Plan — RAP availability, payment brackets, interest subsidy and forgiveness timelines
- Federal Student Aid, provisions effective upon enactment of the One Big Beautiful Bill Act — Removal of the IBR partial financial hardship requirement and RAP payments counting toward PSLF
- Federal Student Aid, PSLF requirements — Qualifying employers, loan and plan requirements, the 120 payments and the full-time definition