RAP Payment Examples at Every Income Level
Formulas are abstract. Here is what RAP actually charges real people at real incomes.
RAP takes a percentage of your adjusted gross income. The percentage rises with income, from 1 percent to 10 percent. Then every dependent knocks $50 a month off, and the payment never goes below $10. Below are worked examples. Find the row closest to your life.
| Income (AGI) | No dependents | One kid | Two kids |
|---|---|---|---|
| $20,000 | $17/month | $10/month | $10/month |
| $30,000 | $50/month | $10/month | $10/month |
| $40,000 | $100/month | $50/month | $10/month |
| $50,000 | $167/month | $117/month | $67/month |
| $60,000 | $250/month | $200/month | $150/month |
| $75,000 | $438/month | $388/month | $338/month |
| $90,000 | $600/month | $550/month | $500/month |
| $120,000 | $1,000/month | $950/month | $900/month |
What jumps out of the table
Dependents matter enormously at lower incomes. A parent earning $30,000 with one child pays the $10 minimum. A single person at the same income pays five times that, and it is still only $50.
The jumps between brackets are real. Going from $50,000 to $60,000 income moves you from the 4 percent rate to the 5 percent rate, so your payment rises faster than your raise. Worth knowing before you pick up extra work in December.
At high incomes RAP stops being cheap. At $120,000 you pay 10 percent of everything, which is $1,000 a month. At that level the Standard Plan or IBR often beats it, depending on your balance.
Two protections the table does not show
On RAP your balance cannot grow. If your payment does not cover the month's interest, the government waives the difference. And your principal drops by at least $50 every month, guaranteed, even if your payment is $10. No other plan has ever done that.
Run your exact number
These rows use round incomes. Your real AGI sits somewhere between them, and a loan balance changes the comparison against the Standard Plan. The free RAP calculator does your exact case in about ten seconds.
Frequently asked questions
How much will I pay on RAP at my income?
RAP charges 1% to 10% of your AGI depending on income, minus $50 per month per dependent, with a $10 minimum. See the table above for exact payments from $20,000 to $120,000 of income.
Does having kids lower my RAP payment?
Yes, significantly. Each dependent cuts $50 off your monthly payment. At lower incomes this can drop your payment all the way to the $10 minimum.
Can my RAP balance grow over time?
No. RAP waives unpaid interest and guarantees at least $50 of principal reduction every month, even if your payment is the $10 minimum.
Is RAP still cheaper at high incomes?
Not always. At $120,000 of income, RAP charges 10% of everything, or $1,000 a month. At that level the Standard Plan or IBR often costs less, depending on your loan balance.