Head to head
RAP vs IBR: which costs less after SAVE?
Repayment Assistance Plan (RAP) against Income-Based Repayment (IBR), rule by rule and with real numbers for four borrowers, from the same engine that ranks your plans.
Rank every plan for me, free Ten questions, two minutes, your own numbers.
The short answer
IBR costs less all in for all four sample borrowers; RAP has the lower first payment for three of them. A lower bill and a lower total are different questions, and the answer turns on income, balance and how each plan ends, so the table shows all of it.
Four borrowers, both plans
| Borrower | RAP a month | RAP all in | IBR a month | IBR all in | Lower all in |
|---|---|---|---|---|---|
| $38,000 income, $27,000 in loans | $95 | $36,180 | $117 | $35,596 | IBR |
| $46,000 income, $58,000 in loans | $153 | $64,000 | $184 | $63,762 | IBR |
| $55,000 income, $48,000 in loans | $229 | $88,976 | $259 | $72,742 | IBR |
| $85,000 income, $95,000 in loans | $567 | $212,225 | $509 | $143,324 | IBR |
Assumes single, a family of one, first loan after July 1, 2014, a 6.5% rate, no public service, flat income, and a 22% tax on any taxable forgiveness. Your own numbers change the order. How each ends: $38: RAP $9,000 forgiven after 30 years, IBR $33,980 forgiven after 20 years; $46: RAP $40,000 forgiven after 30 years, IBR $89,280 forgiven after 20 years; $55: RAP $29,437 forgiven after 30 years, IBR $48,280 forgiven after 20 years; $85: RAP $37,387 forgiven after 30 years, IBR $96,380 forgiven after 20 years.
Rule by rule
Payment
RAP
A share of your adjusted gross income, not of discretionary income: 1% for AGI between $10,001 and $20,000, then one point more for each $10,000 bracket, up to 10% above $100,000. AGI at or under $10,000 pays $10. Subtract $50 a month for each dependent child. Never under $10. Married filing separately counts only your AGI, not your spouse's; filing jointly counts both incomes.
IBR
10% of discretionary income if your first federal loan was made on or after July 1, 2014 ("new borrower" IBR), 15% if earlier. Discretionary income is adjusted gross income minus 150% of the poverty guideline for your family size. The payment never exceeds the 10-year Standard amount set when you enroll. Married filing separately counts only your income, not your spouse's; filing jointly counts both.
Who qualifies
RAP
Direct Loans, including Direct Consolidation Loans. FFEL and Perkins loans must be consolidated first. Parent PLUS loans and consolidation loans that repaid Parent PLUS are excluded. For any loan made on or after July 1, 2026 it is the only income-driven plan.
IBR
Direct and FFEL loans made before July 1, 2026. The partial financial hardship test was removed by the 2025 law, so nearly everyone with eligible loans qualifies, though some servicer tools still show "not eligible"; the paper form is the way through when that happens. Parent PLUS loans are excluded. A new loan or consolidation on or after July 1, 2026 removes IBR access.
Forgiveness
RAP
The remaining balance is forgiven after 360 qualifying payments, 30 years. Months in RAP do not count toward IBR's 20 or 25 year forgiveness if you later switch.
IBR
After 20 years of qualifying payments for new borrowers, 25 for earlier borrowers. Earlier payments under IBR, PAYE, ICR and SAVE count. Months in RAP do not.
Interest
RAP
Interest your payment does not cover is not charged; it is never added to your balance. If your payment reduces principal by less than $50, the Department tops it up so at least $50 goes to principal each month you pay in full.
IBR
For the first three years, unpaid interest on subsidized loans is covered by the government. Other unpaid interest accrues but is not capitalized while you stay in IBR. Leaving IBR for another plan capitalizes it once.
PSLF
RAP
Qualifies. Every on-time payment counts toward the 120.
IBR
Qualifies.
Taxes
RAP
Forgiveness after 30 years is taxable federal income in the year it happens, under the law since January 1, 2026. PSLF forgiveness is not.
IBR
Forgiveness after 20 or 25 years is taxable federal income from 2026. PSLF forgiveness is not.
How to apply
RAP
Online at studentaid.gov/idr with your FSA ID; the IDR Plan Request covers RAP, IBR, PAYE and ICR. Consent to the IRS data share for faster processing and automatic recertification. The paper form has no RAP box yet, so choose it online.
IBR
Online at studentaid.gov/idr. Choose IBR by name; "the plan with the lowest payment" lets the servicer choose. Consent to the IRS data share.
Leaving it
RAP
If every loan you have was made before July 1, 2026, you can move to IBR later. A new loan or a new consolidation on or after that date closes IBR for good.
IBR
Moving from the SAVE forbearance into IBR does not capitalize interest. Moving out of IBR later does, once. You can move to RAP if your loans predate July 2026.
Dates
RAP
Available since July 1, 2026. No end date.
IBR
No sunset for loans made before July 1, 2026.
Who each one fits
RAP is good for
- A balance that would otherwise grow: the interest waiver stops it
- Households with dependent children
- Middle incomes with large balances, where the AGI formula beats 10% of discretionary income
Watch out
- No cap: above roughly $100,000 of income the payment can exceed the 10-year Standard amount, where IBR would cap it
- A 30-year clock, ten years longer than new-borrower IBR
- Time in RAP does not count toward IBR's forgiveness clock
IBR is good for
- Higher earners: the Standard-payment cap limits what you pay
- Borrowers close to 20 or 25 years of income-driven payments
- Anyone who wants the option to switch to RAP later
Watch out
- Unpaid interest accrues (except subsidized loans for three years)
- Leaving IBR capitalizes unpaid interest once
- The 15% version and 25-year clock for loans before July 2014
Which one wins for you depends on your numbers.
Right Repay runs RAP, IBR and every other federal plan on your income, household, balance and loan dates, ranks them on all-in cost, and shows the math. Positions 2 onward are free; the kit to switch is $29.
Rank my plans, freeSources
- The Repayment Assistance Plan, In Focus IF13075 Congressional Research Service
- Public Law 119-21, the 2025 reconciliation act (student loan title) Congress.gov
- Income-driven repayment plans Federal Student Aid
- Top FAQs about income-driven repayment plans Federal Student Aid
- The IDR Plan Request application Federal Student Aid
- IBR vs. RAP: key differences AccessLex Institute
- IBR vs RAP Tate Law
- Switching between IBR and RAP Tate Law
- 34 CFR 685.209, income-driven repayment plans Code of Federal Regulations
- IDR Plan Request, official PDF (OMB 1845-0102) Federal Student Aid
- Income-driven repayment Student Loan Borrower Assistance (NCLC)