RAP Plan FAQ & Guide
What is the OBBBA 2026?
The One Big Beautiful Bill Act (OBBBA) is a federal policy scheduled to reshape student loan repayment on July 1, 2026. It introduces the Repayment Assistance Plan (RAP), designed to simplify calculations by moving from discretionary income formulas to a clear, bracket-based percentage of your AGI.
How does the $10 minimum work?
Under the RAP guidelines, borrowers with an annual income below $10,000 will no longer have $0 payments. Instead, a symbolic $10 monthly contribution is required. This ensures the account remains active and contributes toward forgiveness timelines mandated by the new policy.
Will my interest be subsidized?
Yes, similar to the previous SAVE plan, if your calculated RAP payment does not cover the monthly interest accrual, the remaining interest will be covered by the government. This prevents "negative amortization," ensuring your balance does not grow as long as you make your required payments.
| Annual Income (AGI) | RAP Payment % |
|---|---|
| Under $10,000 | $10 Flat Fee |
| $10,000 – $20,000 | 1% of AGI |
| $50,000 – $60,000 | 5% of AGI |
| $100,000+ | 10% Capped |