RAP vs IBR vs Standard: compare your student loan plans side by side

RAP is the new income-driven repayment plan created by the 2025 budget law (One Big Beautiful Bill Act). Your payment is a percentage of your AGI — from a flat $10/month under $10,000 of income up to 10% of AGI above $100,000 — minus $50 per dependent, never below $10/month. Interest your payment doesn't cover is waived, the government adds up to $50/month toward principal if needed, and any remaining balance is forgiven after 360 qualifying payments (30 years). It opened to applications on studentaid.gov in July 2026.

It depends on your income, family size, and how long you've been repaying. IBR usually wins if you're closer to its 20- or 25-year forgiveness clock (your SAVE/old IDR payments count toward IBR forgiveness), if your income is low relative to your family size, or if you're pursuing PSLF on a shorter timeline. RAP usually wins if you'd face negative amortization on IBR (RAP waives unpaid interest), if you have many dependents (the $50/dependent deduction), or if IBR's payment would be higher than RAP's for your bracket. Run both in the simulator above and compare total cost and forgiveness timing.

Take your AGI: $10,000 or less pays a flat $120/year ($10/month). From $10,001 to $20,000 the payment is 1% of AGI per year, and each additional $10,000 bracket adds one percentage point, reaching 10% of AGI above $100,000. Divide the annual amount by 12, then subtract $50 per dependent. The payment never goes below $10/month.

Yes. If your RAP monthly payment doesn't cover the interest that accrued that month, the uncovered interest is waived — your balance does not grow. On top of that, if your payment reduces principal by less than $50, the government adds the difference (up to $50/month) toward your principal, so your balance falls at least a little every month you pay on time.

IBR takes your AGI minus 150% of the HHS poverty guideline for your family size (that's your discretionary income), then charges 10% of it per year (12 monthly installments) if you were a new borrower on or after July 1, 2014, or 15% if you borrowed earlier. The payment is capped at what you'd pay on the 10-year Standard plan, and forgiveness comes after 20 years (new borrowers) or 25 years.

Servicers began sending 90-day notices to SAVE borrowers in July 2026. If you don't choose a plan within your 90-day window, you'll be moved into a standard repayment plan automatically — which typically has the highest monthly payment and no forgiveness. Interest has already been accruing on SAVE accounts since August 2025, and forbearance months don't count toward forgiveness, so choosing sooner usually costs less.

No — this is an independent educational simulator. It implements the published formulas (Congressional Research Service report IF13075 and studentaid.gov guidance) with the 2026 HHS poverty guidelines, using simplified assumptions like annual recertification and steady income growth. Your servicer's numbers and the official studentaid.gov Loan Simulator are authoritative.