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Index/Topics/Income-Driven Repayment (IDR) Options

Income-Driven Repayment (IDR) Options

The change shifts the payment base from “discretionary income” to whole-AGI tiers and was enacted as part of the FY2025 reconciliation law that created RAP and consolidated IDR options.

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Jan 26, 2026
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What are the detailed income percentage tiers (breakpoints) used by RAP and how were they set?

The replaces prior income‑driven models with a tiered schedule that charges a set percentage of adjusted gross income (AGI) that rises with earnings — broadly described in reporting as ranging from ab...