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Head to head

RAP vs Standard: which costs less after SAVE?

Repayment Assistance Plan (RAP) against Standard 10-year, 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

RAP costs less all in for two of the four sample borrowers and Standard for two; RAP has the lower first payment for all 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

BorrowerRAP a monthRAP all inStandard a monthStandard all inLower all in
$38,000 income, $27,000 in loans$95$36,180$307$36,790RAP
$46,000 income, $58,000 in loans$153$64,000$659$79,029RAP
$55,000 income, $48,000 in loans$229$88,976$545$65,404Standard
$85,000 income, $95,000 in loans$567$212,225$1,079$129,445Standard

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, Standard paid off in 10 years; $46: RAP $40,000 forgiven after 30 years, Standard paid off in 10 years; $55: RAP $29,437 forgiven after 30 years, Standard paid off in 10 years; $85: RAP $37,387 forgiven after 30 years, Standard paid off in 10 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.

Standard

A level payment that clears the balance in 120 months at your rate. It does not change with income.

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.

Standard

Loans made before July 1, 2026. Later loans use the Tiered Standard plan.

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.

Standard

None. The balance is paid in full.

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.

Standard

All interest is paid; nothing accrues unpaid because the payment always covers it.

PSLF

RAP

Qualifies. Every on-time payment counts toward the 120.

Standard

Qualifies, though a 10-year plan pays the loan off in the same 120 payments, so little is left to forgive.

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.

Standard

Nothing is forgiven, so nothing is taxed.

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.

Standard

Request it from your servicer, online or with the Repayment Plan Request form. Borrowers who do nothing are placed on it when the 90-day window closes.

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.

Standard

You can move to an income-driven plan at any time; confirming Standard yourself avoids a surprise bill date.

Dates

RAP

Available since July 1, 2026. No end date.

Standard

No end date.

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

Standard is good for

  • Balances small against income, where the payment is affordable and the total is lowest
  • Paying off fast

Watch out

  • The highest monthly payment of the fixed plans
  • No forgiveness
A man at a desk by a window reading a printed repayment plan with a pen in his hand

Which one wins for you depends on your numbers.

Right Repay runs RAP, Standard 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.

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Sources

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