On RAP, a single borrower with $40,000 AGI and no dependents pays $100.00 a month ($1,200.00 a year). $40,000 sits at the top of the 3% band, so RAP takes 3% of the full $40,000; one more dollar of AGI moves the whole amount to 4% and the payment to $1,600.04 a year.
Every figure on this page comes from the Finology Software engine behind the RAP payment calculator, on the federal rules as of October 2026 (engine date 2026-10-14). Estimates for planning only, not advice.
RAP payment at $40,000 by number of dependents
| Dependents | Monthly payment | Yearly payment | How it is figured |
|---|---|---|---|
| 0 | $100.00 | $1,200.00 | 3% of $40,000 = $1,200.00 a year, divided by 12 |
| 1 | $50.00 | $600.00 | $100.00 minus $50.00 |
| 2 | $10.00 | $120.00 | $100.00 minus $100.00 is below $10, so the $10 minimum applies |
| 3 | $10.00 | $120.00 | $100.00 minus $150.00 is below $10, so the $10 minimum applies |
| 4 | $10.00 | $120.00 | $100.00 minus $200.00 is below $10, so the $10 minimum applies |
Dependents are people you can claim under the tax code. A married borrower who files separately counts only the dependents claimed on their own return. More on family size: how family size affects student loan payments.
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How the $40,000 RAP payment is figured, step by step
- Find the band. $40,000 is more than $30,000 and not more than $40,000 of AGI, so the rate is 3% (HEA § 455(q)(4)(B)(iv)).
- Apply the rate to the whole AGI, not just the part above a threshold, and with no poverty-line deduction: 3% of $40,000 is $1,200.00 a year.
- Divide by 12: $100.00 a month.
- Subtract $50 a month for each dependent you claim. There is no cap on the number of dependents.
- If the result is under $10, the payment is $10.
RAP reads the adjusted gross income on your federal tax return, not your salary. AGI starts from wages after pre-tax payroll deductions, adds other taxable income and subtracts adjustments such as the student loan interest deduction, so a $40,000 salary usually means an AGI below $40,000 and a payment at or below the figure on this page.
Why the band edge matters at $40,000. RAP re-prices every dollar when AGI crosses a band line. At $40,001 the rate is 4%, so the yearly payment goes from $1,200.00 to $1,600.04, $400.04 more for one dollar of income. Going the other way works the same: pre-tax 401(k), 403(b), 457 or HSA contributions lower AGI, and a household near this line can model whether a contribution keeps it in the 3% band.
Married filing jointly or separately at $40,000
RAP uses the AGI on the return you file. Filing jointly, that is the household AGI, so a spouse’s income can move the payment into a higher band. Filing separately, RAP leaves the spouse’s income out (HEA § 455(q)(4)(A)). The example spouse earns $50,000 and has no federal student loans; no dependents.
| Filing status | AGI RAP uses | Rate | Monthly payment | Yearly payment |
|---|---|---|---|---|
| Single | $40,000 | 3% | $100.00 | $1,200.00 |
| Married filing separately | $40,000 | 3% | $100.00 | $1,200.00 |
| Married filing jointly, spouse earns $50,000 | $90,000 | 8% | $600.00 | $7,200.00 |
Filing separately keeps the payment at $100.00 here, $500.00 a month less than filing jointly. Separate returns usually cost more in income tax, so the two have to be compared together: married filing separately on RAP.
What happens to unpaid interest and principal on RAP
- Unpaid interest is not charged. In any month the on-time payment is less than the interest that accrued, the unpaid interest for that month is waived rather than added to the balance (HEA § 455(q)(2)(A); 34 CFR 685.209(h)(4)(i)).
- Principal match. If the on-time payment lowers principal by less than $50, the Department reduces principal by the difference, up to the lesser of $50 and the payment made (HEA § 455(q)(2)(B); 34 CFR 685.209(o)).
- Forgiveness at 360 payments. Any balance left after 360 qualifying monthly payments is forgiven (HEA § 455(q)(1)(E)).
At $40,000, on a $50,000 balance at 6.5%, the payment does not pay the loan off within 30 years: the engine shows $32,000 forgiven after 360 payments. Details: the RAP interest waiver and $50 principal match.
RAP vs the 10-year Standard plan at $40,000
| Balance | RAP monthly | RAP total paid | RAP outcome | Standard monthly | Standard total paid |
|---|---|---|---|---|---|
| $50,000 | $100 | $36,000 | $32,000 forgiven at year 30 (estimated tax $6,000) | $568 | $68,129 |
| $100,000 | $100 | $36,000 | $82,000 forgiven at year 30 (estimated tax $17,326) | $1,135 | $136,258 |
Monthly figures are rounded to the dollar, as the calculator shows them. For a side-by-side at other incomes, see RAP vs Standard, or run your own balance and rate in the RAP payment calculator.
Frequently asked questions about the RAP payment at $40,000
What is the RAP payment on a $40,000 salary?
RAP uses adjusted gross income, not salary. At $40,000 of AGI, single with no dependents, the payment is $100.00 a month, $1,200.00 a year. If pre-tax retirement or HSA contributions bring AGI below salary, RAP is figured on the lower AGI.
How much do dependents lower the RAP payment at $40,000?
Each dependent lowers the payment by $50 a month, with no cap, and the payment never falls below $10. At $40,000: 1 dependent: $50.00; 2 dependents: $10.00; 3 dependents: $10.00; 4 dependents: $10.00. With 2 or more dependents the $10 minimum applies.
What is the RAP payment at $40,000 if I am married filing jointly?
Filing jointly, RAP uses the household AGI on the joint return. With a spouse earning $50,000, AGI is $90,000, the rate is 8%, and the payment is $600.00 a month. Filing separately, RAP uses only your $40,000: $100.00 a month.
What happens to the RAP payment if AGI goes above $40,000?
At $40,001 the rate becomes 4% of the whole AGI, so the payment rises from $1,200.00 to $1,600.04 a year. Because RAP applies one rate to all income, crossing the line by a single dollar adds $400.04 a year to the payment.
Is the remaining balance forgiven on RAP at $40,000?
Any balance left after 360 qualifying monthly payments, 30 years, is forgiven (HEA § 455(q)(1)(E)). At $40,000, on a $50,000 balance at 6.5%, the payment does not pay the loan off within 30 years: the engine shows $32,000 forgiven after 360 payments. With the 10-year Standard plan the same $50,000 is paid off in 10 years at $568 a month.
RAP payment at other incomes
RAP payment at $30,000 · RAP payment at $50,000 · The full RAP payment schedule by income · RAP payment calculator
- $30,000
- $40,000
- $50,000
- $60,000
- $70,000
- $80,000
- $90,000
- $100,000
- $110,000
- $120,000
- $130,000
- $140,000
- $150,000
- $175,000
- $200,000
Sources
- One Big Beautiful Bill Act, Pub. L. 119-21 § 82001, adding HEA § 455(q) (20 U.S.C. 1087e(q)): the Repayment Assistance Plan, its payment bands, the $50 dependent reduction, the $10 minimum, the interest and principal assistance and forgiveness after 360 payments.
- 34 CFR 685.209, the implementing regulation.