RAP Student Loan Calculator
Estimate your monthly payment under the new Repayment Assistance Plan (RAP) — the federal student loan repayment plan created by the One Big Beautiful Bill Act, live since July 1, 2026.
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Adjust values to see instant results
Estimated Monthly RAP Payment
$229.17
Estimated • Based on your inputs
Estimated Total Paid Until Forgiveness
$82,500.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
The Repayment Assistance Plan (RAP) — created by the One Big Beautiful Bill Act and available since July 1, 2026 — bases your monthly payment on income brackets rather than discretionary income like older IDR plans (SAVE, PAYE, ICR). Borrowers with AGI of $10,000 or less pay a flat $10/month. Above that, the payment is a percentage of AGI that rises in $10,000 increments from 1% (AGI $10,001-$20,000) up to 10% (AGI over $100,000), divided by 12 for a monthly figure. You then subtract $50/month for each dependent claimed on your tax return, with a $10/month absolute minimum. If your RAP payment doesn't cover a month's accruing interest, that unpaid interest is waived rather than added to your balance (a subsidy similar to the old SAVE plan) — the calculator shows this as your "monthly interest waived." Remaining RAP balances are forgiven after 360 qualifying monthly payments (30 years), or after 120 qualifying payments (10 years) for borrowers pursuing Public Service Loan Forgiveness. This is an estimate: it assumes your AGI and dependents stay constant, which is unlikely over a 10-30 year repayment period, and forgiven non-PSLF balances are generally taxable as income under current law.
How to Use This Student Loans Calculator
- 1
Enter your loan balance
Input the total outstanding balance across all your student loans. If you have multiple loans, combine federal and private balances for a complete picture.
- 2
Set your interest rate
Enter the weighted average interest rate across your loans. Federal Direct Loans for 2025–26 are around 6.53% (undergraduate). Private loans vary widely by lender and creditworthiness.
- 3
Choose a repayment plan
Compare Standard (10-year), Extended (25-year), Graduated, or income-driven plans (SAVE, PAYE, IBR, ICR). Income-driven plans cap payments at 10–20% of discretionary income.
- 4
Add extra payments (optional)
See how additional monthly payments accelerate payoff. Even $50/month extra on a $30K loan at 6% can save $2,500+ in interest and shave 2 years off repayment.
- 5
Review total interest paid
Compare the total cost under different repayment options. Lower monthly payments often mean dramatically higher total interest — the tradeoff is cash flow vs. total cost.
Example Calculation
Let's analyze a common student loan scenario for a graduate in a typical state.
A borrower has $35,000 in federal Direct Loans at a weighted average rate of 5.8%. Under the Standard 10-year plan, the monthly payment is approximately $386. Under the SAVE income-driven plan with a $45,000 salary, the payment drops to roughly $175/month — but extends repayment to 20+ years.
Result: Standard plan: $46,281 total paid ($11,281 interest). SAVE plan: ~$52,500 total paid, but monthly payments start much lower and increase with income. After 20 years of qualifying payments under SAVE, any remaining balance is forgiven — though forgiven amounts may be taxable. The right choice depends on your income trajectory and career plans.
What Affects Your Results
Interest Rate
Federal rates are set annually by Congress. Private rates depend on credit score, cosigner, and market conditions. A 2% rate difference on $30K adds ~$7,000 in total interest over 10 years.
Repayment Plan
Income-driven plans reduce monthly payments but extend repayment, often doubling or tripling total interest. Standard 10-year plans minimize total cost.
Income Growth
Income-driven payments increase as your salary grows. A fast-growing income may make standard repayment more cost-effective in the long run.
Loan Forgiveness Eligibility
PSLF (public service) and IDR forgiveness (20-25 years) can eliminate tens of thousands in remaining balance — but require consistent qualifying payments and employment.
State Tax Treatment
Some states tax forgiven student loan debt as income, while others exempt it. Check your state's rules before counting on forgiveness.
Tips & Best Practices
- Never miss a payment — set up autopay for a 0.25% interest rate reduction (offered by nearly all federal loan servicers and many private lenders).
- Check if your state offers student loan tax deductions beyond the federal $2,500 student loan interest deduction. Several states provide additional relief.
- If you work in public service (government, 501(c)(3) nonprofits), investigate Public Service Loan Forgiveness (PSLF) — tax-free forgiveness after 120 qualifying payments.
- Refinancing federal loans to a private lender can lower your rate but permanently eliminates access to income-driven repayment, PSLF, and federal forbearance/deferment protections.
- Pay more than the minimum, but specify that extra payments go toward principal — otherwise servicers may apply them to future payments, which doesn't reduce interest.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is the RAP student loan plan?
RAP (Repayment Assistance Plan) is a new federal income-driven student loan repayment plan created by the One Big Beautiful Bill Act (signed July 2025) and available to borrowers starting July 1, 2026. It replaces SAVE, PAYE, and ICR for federal loans first disbursed on or after that date, and is available as a voluntary option for existing borrowers too.
How is my RAP monthly payment calculated?
RAP uses AGI brackets instead of discretionary income: $10/month flat if your AGI is $10,000 or less, then a percentage of your full AGI that rises from 1% to 10% in $10,000 income increments, divided by 12. You then subtract $50/month for each dependent claimed on your tax return, down to a $10/month minimum.
What happened to the SAVE plan?
SAVE, PAYE, and ICR stopped accepting new enrollments on July 1, 2026, and will be fully discontinued by July 1, 2028. Borrowers currently enrolled in those plans can generally stay on them only until that 2028 deadline, after which they must switch to RAP or the surviving IBR plan.
How long until my RAP balance is forgiven?
RAP balances are forgiven after 360 qualifying monthly payments (30 years) — significantly longer than older IDR plans, which typically forgave after 20-25 years. Borrowers pursuing Public Service Loan Forgiveness (PSLF) still qualify for forgiveness after 120 qualifying payments (10 years) while on RAP.
Is RAP better or worse than my current income-driven repayment plan?
It depends on your income. Because RAP bases payments on your full AGI rather than income above a poverty-line threshold, lower-income borrowers with dependents often see smaller RAP payments than under old IDR formulas, while higher earners can see larger RAP payments than they'd owe under IBR. Run both scenarios (this calculator and studentaid.gov/idr) before switching plans voluntarily.
Is student loan forgiveness taxable under RAP?
Under current federal law, non-PSLF loan forgiveness (including RAP forgiveness after 30 years) is generally treated as taxable income in the year it is forgiven. PSLF forgiveness after 120 qualifying payments remains tax-free.
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