On a first-year union apprentice wage of about $44,000, the new federal Repayment Assistance Plan (RAP) sets your payment near $147 a month, whatever you owe, because RAP bases the payment on income, not on your balance. On a $30,000 balance, the standard 10-year plan would cost about $333 a month. And on RAP your balance goes down every month you pay in full, even in year one.
How RAP sets your payment
RAP takes a percentage of your adjusted gross income (AGI) and divides it by 12. The percentage rises with income and applies to your whole AGI.
| Your AGI | Share of AGI per year |
|---|---|
| $10,000 or less | $10/month minimum |
| $10,001–$20,000 | 1% |
| $20,001–$30,000 | 2% |
| $30,001–$40,000 | 3% |
| $40,001–$50,000 | 4% |
| $50,001–$60,000 | 5% |
| $60,001–$70,000 | 6% |
| $70,001–$80,000 | 7% |
| $80,001–$90,000 | 8% |
| $90,001–$100,000 | 9% |
| Over $100,000 | 10% |
The payment drops $50 a month for each dependent you claim. It's based on last year's tax return and recalculated every year.
Your payment at each apprentice pay step
This uses the Nashville Electrical JATC (IBEW 429) scale, with journeyman pay at $36.82 an hour as of June 2026. Pay steps change by hour block, not calendar year, so yearly figures are approximate. Annual pay assumes 2,000 hours and no overtime, and treats gross pay as AGI. Pre-tax deductions would lower your AGI and your payment.
| Stage | % of journeyman pay | Hourly | Annual | RAP payment / month |
|---|---|---|---|---|
| Year 1 | 60% | $22.09 | $44,180 | $147 |
| Year 2 | 65–70% | about $24.39 | about $48,780 | $163 |
| Year 3 | 70–75% | about $26.70 | about $53,400 | $222 |
| Year 4 | 75–80% | about $29.00 | about $58,000 | $242 |
| Journeyman | 100% | $36.82 | $73,640 | $430 |
Because RAP uses last year's return, your first apprentice year is often billed on your old job's income. If you earned $30,000 last year, year one runs about $50 a month.
Why low payments aren't a trap on RAP
On older income-driven plans, small payments let unpaid interest pile up. RAP fixes that two ways:
- Unpaid interest is waived. If your payment doesn't cover the month's interest, the rest is forgiven, as long as you paid in full.
- Principal drops up to $50 a month. If your payment cuts principal by less than $50, the government makes up the difference, up to the amount of your payment.
Example: on $30,000 at 6%, interest runs about $150 a month. Your $147 payment covers almost all of it, the $3 gap is waived, and the government adds $50 toward principal. Your balance goes down every month, even in year one.
The full picture on a $30,000 balance
We ran a sample $30,000 balance at 6% through the pay steps above, starting from a $30,000-a-year job.
| Plan | Payoff time | Total paid |
|---|---|---|
| Standard 10-year | 10 years | about $40,000 ($333/month) |
| RAP, apprentice to journeyman | about 11 years | about $41,000 |
RAP costs about $1,000 more in total and takes a year longer. In exchange, the payment fits the wage you're actually earning in the lean years. Run your own numbers in the federal Loan Simulator.
Which plan you can pick
- Loans from before July 1, 2026, with no new loans: you can choose RAP or the older plans, such as IBR. PAYE and ICR are being retired no later than July 1, 2028.
- Any loan disbursed on or after July 1, 2026: only RAP or the Tiered Standard plan.
- Parent PLUS loans can't use RAP.
Three traps to avoid
- Don't count on in-school deferment for an apprenticeship. Deferment requires at least half-time enrollment at a school approved for federal aid. A union training center generally isn't one. Ask your servicer before you stop paying.
- Think hard before a new federal loan for trade school. New loans after July 1, 2026 go on RAP or the tiered plan only. Starting July 1, 2027, borrowers with new loans or a new consolidation also lose economic-hardship and unemployment deferment.
- Private loans don't flex. RAP covers federal loans only. If you have private loans, call the lender before your pay drops and get any hardship option in writing.
Public Service Loan Forgiveness
Most trade employers are private contractors, so PSLF won't apply. The exception: some city-owned utilities and public agencies hire linemen, electricians and HVAC techs. If you work full time for one, check PSLF on studentaid.gov.
Questions
Can I defer my student loans during an apprenticeship?
Usually not through in-school deferment, since union training centers generally aren't federal-aid schools. RAP is the better tool: payments on an apprentice wage are low and your balance still drops.
What is the minimum payment on RAP?
$10 a month.
How much is a RAP payment on $44,000 a year?
About $147 a month: 4% of $44,000 divided by 12, before any $50-per-dependent reduction.
Does RAP forgive the rest?
After 30 years of payments, yes. Under current law, balances forgiven on or after January 1, 2026 count as taxable federal income.