GenzeeNew RAP Student Loan Repayment Plan Launches July 2026
A new federal student loan repayment plan officially opened for enrollment on 1 July 2026. The Repayment Assistance Plan (RAP) is a new income-driven option created under 2025's federal tax and spending overhaul, according to reporting from Georgetown University's financial aid office and the U.S. Department of Education.
What's different about RAP
RAP replaces several older income-driven repayment plans and comes with its own formula for calculating monthly payments based on income, plus its own timeline toward eventual forgiveness. Notably, Parent PLUS loans disbursed on or after 1 July 2026 can only be repaid through RAP — they're no longer eligible for other income-driven plans, and parents who borrow going forward lose the pathway to Public Service Loan Forgiveness that some previously had, per the Georgetown summary.
Should you switch?
Whether RAP is better than your current plan depends heavily on your income, loan balance and career path — it isn't automatically the cheapest option for everyone. Before switching, run your numbers through our Student Loan Calculator to compare estimated monthly payments and long-term interest under different scenarios.
Note: This is a plain-language summary, not financial advice. Markets, rates and rules can change quickly; do your own research or speak to a licensed adviser before acting. See our editorial policy for how we source and date figures.