RAP forgiveness after 30 years, and the tax question

The rule

Under RAP, any remaining balance is forgiven after you have made 360 qualifying monthly payments over at least 30 years, as long as you were on RAP at some point and your last payment before forgiveness was under RAP.

What counts toward the 360

• On-time, full RAP payments
• On-time payments under the Tiered Standard Plan
• Payments under other plans that were at least the 10-year standard amount
• Payments under IBR, including the minimum allowed
• Before July 1, 2028, payments under ICR-type plans (ICR, PAYE, SAVE/REPAYE) and certain alternative plans
• Months of unemployment or economic hardship deferment
• Certain deferment and forbearance months that ended before July 1, 2026

Progress earned under other income-driven plans before you entered RAP counts. If you move from a 20-year plan into RAP, your target becomes 30 years.

Taxes

StudentAid.gov says that except for PSLF, you might have to pay federal and/or state income taxes on any loan amount that is discharged. You will be notified when your loan is identified as eligible and have 21 days to opt out of the discharge. This site’s estimates of a forgiven balance do not include any tax.

How often it applies

Whether anything is left after 30 years depends on income and balance. In the calculator, many borrowers pay the loan off on RAP before 30 years; low incomes relative to the balance are where forgiveness shows up.

Not financial or legal advice. This page explains the published rules. It does not tell you which plan to choose. Your loan servicer and StudentAid.gov have the final word on your account.

Next guide: IBR after the 2025 law: what changed and who can still use it