The RAP Payment Formula, Step by Step

RAP takes a percentage of your whole AGI — no poverty-line deduction: $120 a year at $10,000 or less, then 1% for incomes over $10,000 up to $20,000, 2% up to $30,000, and so on to 10% above $100,000. Divide by 12, subtract $50 per dependent, and the floor is $10. If that doesn't cover the month's interest, the unpaid interest is waived; if it reduces principal by less than $50, the government pays the difference up to $50 (20 U.S.C. 1087e(q)). After 360 qualifying payments, the rest is forgiven.

Last reviewed 2026-10-29. General information, not financial advice. studentaid.gov, your servicer and the Loan Simulator come first.