How much does RAP pay for families versus single individuals in 2025?
Executive summary
The Repayment Assistance Plan (RAP) sets a floor $10 monthly payment and scales payments as a percentage of adjusted gross income up to a 10% cap for higher earners; RAP also reduces payments by $50 per dependent child, and treats household income differently for married filers (creating a potential “marriage penalty”) [1] [2] [3] [4]. Analysts and calculators show single borrowers at low incomes may pay as little as $10/month while higher earners pay up to 10% of AGI; families with dependents see per-dependent reductions but may still face larger combined payments if both spouses’ incomes are counted [2] [1] [5].
1. How RAP determines a borrower’s payment — the basic mechanics
RAP replaces prior IDR formulas with a payment tied directly to a borrower’s adjusted gross income (AGI): monthly payments are a graduated percentage of AGI that rise with income and are capped at 10% for high earners; the plan also establishes a $10 minimum monthly payment for the lowest-income borrowers [2] [1]. Unlike SAVE and earlier IDR plans that use “discretionary income” above a poverty threshold, RAP’s tiered percentage approach produces steadily higher payments as AGI increases [2] [6].
2. What singles typically pay under RAP — low to high incomes
For single borrowers with very low AGI, RAP imposes a $10 monthly minimum; as income rises the percent-of-AGI formula increases payments until the plan’s top tier (10% of AGI) applies for those with the highest incomes [1] [2]. Public calculators and reporting indicate single borrowers who previously qualified for $0 payments under older IDR plans will generally see positive payments under RAP — often small at first but larger than $0 — and that some middle-income singles face higher monthly bills than under the SAVE/IBR structure [2] [7].
3. How family size and dependents change the math
RAP reduces required payments by $50 per dependent child; state guidance and advocacy analysis emphasize this is a flat-rate deduction rather than a percentage, which helps some households but can be insufficient for very low-income families [1] [3]. Calculators built for RAP use the updated 2025 poverty-line definitions and family-size tables to estimate payments, but the $50-per-dependent reduction is notably smaller and less targeted than the discretionary-income exclusions used in prior plans [8] [3].
4. Married couples and the “marriage penalty” — household vs. individual income
RAP’s treatment of household income creates a clear trade-off: when both spouses’ incomes are counted (for those filing jointly), the plan can move a household into higher percentage tiers and dramatically raise monthly payments; experts and advisors warn this produces a marriage penalty for many couples compared with filing separately [4] [5]. Urban Institute modelling and practitioner examples show a household earning combined AGI can face a much higher aggregate payment than the same incomes considered separately [5] [4].
5. How experts and calculators view the net impact — winners and losers
Independent analyses and calculators (Student Loan Planner, Investopedia, Urban Institute, etc.) find mixed outcomes: some low-income borrowers pay similar or slightly lower amounts because of the $10 floor and dependent cuts, but many middle-income borrowers and couples could see higher monthly payments than under existing IDR rules, and total lifetime payments can increase for certain profiles [9] [7] [5]. TICAS explicitly criticizes the flat $50 dependent deduction and warns RAP’s structure will raise payments for many and extend repayment terms to 30 years for some — outcomes it calls poorly targeted [3].
6. What this means for a family vs. a single borrower in practice
Families with dependents do get a concrete $50 reduction per child, but that reduction may not offset the jump in payment percentage when household income is counted — particularly for married filers — so many two-income households will pay substantially more under RAP than a single borrower with comparable individual income [1] [4]. Available reporting and calculators show the practical result: single low-income borrowers can end up paying as little as $10/month, whereas families — depending on household AGI and filing status — often face higher monthly obligations, up to the 10% cap for high combined incomes [2] [5].
Limitations and where reporting diverges
Exact dollar comparisons depend on individual AGI, number of dependents, tax filing status, and whether borrowers consolidate or have older loans; available sources provide examples and calculators but no single authoritative table that covers every income/family-size permutation [8] [9]. Some analysts emphasize RAP’s predictability and fiscal savings, while advocates (TICAS, Urban Institute) highlight higher payments for many borrowers and design flaws such as the low flat dependent deduction [3] [5].