Student Loan Repayment Calculator: RAP, Tiered Standard and 10-Year Plans
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The Repayment Assistance Plan (RAP) sets your payment at 1% to 10% of your adjusted gross income, divided by 12, minus $50 for each dependent, with a $10 minimum. Any balance left after 30 years is forgiven.
On a $45,000 balance at 6.50% with an income of $62,000, the Repayment Assistance Plan starts at $310.00 a month. It pays off in 13 years 6 months. The tiered standard plan (15 years) costs $392.00 a month, and the 10-year standard plan costs $510.97.
Plans compared
| Plan | Payment | Years | Total paid | Forgiven |
|---|---|---|---|---|
| RAP | $310.00 (changes yearly) | 13.5 | $71,803 | $0 |
| Tiered standard | $392.00 | 15 | $70,560 | $0 |
| 10-year standard | $510.97 | 10 | $61,316 | $0 |
RAP by year
| Year | Monthly payment | Balance at year end |
|---|---|---|
| 1 | $310.00 | $44,181 |
| 2 | $319.30 | $43,192 |
| 3 | $328.88 | $42,018 |
| 4 | $338.75 | $40,644 |
| 5 | $348.91 | $39,052 |
| 6 | $419.27 | $36,484 |
| 7 | $431.85 | $33,588 |
| 8 | $444.80 | $30,337 |
| 9 | $458.15 | $26,705 |
| 10 | $539.31 | $21,825 |
Show the steps
- RAP rate: 6% of AGI because income is in the $60,001 to $70,000 band.
- Monthly: ($62,000 × 6%) ÷ 12, never below $10 = $310.00.
- If a payment does not cover the month’s interest, the unpaid interest is not charged. The government also matches principal up to 50 dollars a month.
- Standard payment: $45,000.00 at 6.500% over 120 months = $510.97.
Repayment Assistance Plan
Payment = (AGI × rate by band) ÷ 12 − 50 per dependent, at least 10
Band rate: 1% for AGI 10,001 to 20,000, up to 10% above 100,000
Loan forgiven after 360 payments
- RAP became available to Direct Loan borrowers on July 1, 2026. Rules and your servicer’s calculation can differ, so use this as an estimate.
- Income is assumed to grow at the rate you enter. Payments are recalculated each year.
- Spouse income counts only if you file jointly. Enter your joint AGI in that case.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
Federal student loan repayment changed under the 2025 reconciliation law. The Repayment Assistance Plan (RAP) is a new income-driven plan that became available on July 1, 2026. Borrowers with loans first made on or after that date choose between RAP and a tiered standard plan with a term of 10 to 25 years.
This calculator estimates your RAP payment from your income and dependents, tracks it year by year as your income grows, and compares it with the tiered standard plan and a 10-year standard plan. Treat the numbers as estimates: your servicer calculates the official payment.
How to use it
- Enter your total Direct Loan balance and the weighted interest rate.
- Enter your adjusted gross income and the number of dependents on your tax return.
- Open the options to change the yearly income growth.
- Compare the plans and read the RAP year-by-year table.
How RAP works
- Payment: a percent of your AGI, from 1% (AGI over $10,000) up by one point for each additional $10,000, to 10% above $100,000. AGI of $10,000 or less pays $10 a month.
- Dependents: the monthly payment drops by $50 for each dependent, but never below $10.
- Interest: if your payment does not cover the month’s interest, the unpaid interest is not charged.
- Principal match: if your payment reduces principal by less than $50, the government reduces the principal by up to $50.
- Forgiveness: after 360 payments (30 years), the remaining balance is forgiven.
Tiered standard plan
For new borrowers, the term depends on the balance: 10 years under $25,000, 15 years from $25,000 to $49,999, 20 years from $50,000 to $99,999, and 25 years at $100,000 or more.
Sources
Quick check: test yourself
Under RAP, an income of $65,000 pays what share of AGI?
Correct answer: 6%. AGI from $60,001 to $70,000 pays 6%.
What is the lowest RAP monthly payment?
Correct answer: $10. RAP has a minimum payment of 10 dollars a month.
After how many years of payments is a remaining RAP balance forgiven?
Correct answer: 30. RAP forgives the balance after 360 monthly payments.
Pick an answer for each question.
Common questions
What is the Repayment Assistance Plan?
An income-driven plan for federal Direct Loans where your payment is a percent of your AGI, between 1% and 10%, with a $10 minimum and forgiveness after 30 years.
How is the RAP payment calculated?
Multiply your AGI by the percent for your income band, divide by 12, and subtract $50 for each dependent. The payment cannot go below $10.
Does my spouse’s income count?
Only if you file a joint tax return.
Is forgiveness taxable?
Forgiven balances may be taxed as income under federal rules. Check current law before you reach forgiveness.
What is the tiered standard plan?
A fixed-payment plan for new borrowers with a 10, 15, 20 or 25-year term depending on how much you owe.
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