How RAP and IBR differ
Both plans set the payment from income and forgive what's left after enough qualifying payments, but almost every detail differs:
| RAP | IBR | |
|---|---|---|
| Payment | 1% to 10% of your whole AGI (by bracket) ÷ 12, minus $50 per dependent | 10% or 15% of AGI above 150% of the poverty guideline ÷ 12 |
| Minimum | $10 a month | $0 below a $5 calculated payment; $10 from $5 |
| Cap | None | The 10-year standard payment when you entered IBR |
| Unpaid interest | Waived on on-time payments | Charged (capitalizes when the payment hits the cap or you leave) |
| Principal | Matched up to $50 a month | No match |
| Forgiveness | After 360 payments (30 years) | After 240 (new borrowers since July 1, 2014) or 300 payments |
| Family | $50 off per tax dependent | Poverty guideline for your whole family size |
| Who can use it | Everyone with eligible loans | Only loans made before July 1, 2026 |
When RAP tends to win
- You will pay the loan off. With no interest growth and a monthly principal match, every on-time payment shrinks the balance. On the calculator's starting example, a single borrower earning $55,000 with $35,000 at 6.52%, RAP starts at $229.17 a month against IBR's $258.83 and pays the loan off in 162 months instead of 172.
- Your income sits in the lower part of a bracket. RAP's percentage is low at the bottom of each $10,000 band.
- You want certainty the balance won't grow. Under IBR a small payment can let unpaid interest pile up for years.
When IBR tends to win
- Large balances. IBR forgives after 20 or 25 years, RAP after 30. For a borrower with $220,000 at 7.05% and $68,000 of AGI, the calculator shows RAP running the full 360 payments while IBR reaches forgiveness at 240. That costs roughly $211,000 in total under IBR, including the estimated tax, against about $343,000 under RAP.
- Low incomes. IBR can be $0; RAP never goes below $10. At $22,000 of AGI, IBR's payment is $0 and RAP's is $36.67.
- Families. IBR's deduction grows with family size (150% of $5,680 for each extra person in the 48 states in 2026). RAP takes a flat $50 a month per dependent.
- Higher incomes with a balance that stays high. IBR's payment is capped at your 10-year standard amount; RAP has no cap.
Many results are close, and they are sensitive to raises and family changes. Change the inputs and watch the order.
If you're pursuing PSLF
With Public Service Loan Forgiveness, what's left after 120 qualifying payments is forgiven tax-free. So the plan with the lower payments usually wins, and both RAP and IBR count. Tick "Working toward PSLF" to see it.
Medical residents and other low-income, high-balance years
Borrowers who earn little now and much more later, such as residents, fellows or early-career lawyers, face the widest gap. At a resident's income, both RAP and IBR payments are small compared with the interest. RAP waives that interest while IBR lets it accrue, and IBR forgives a decade sooner. The right answer usually turns on PSLF: with PSLF, pick the lower payment; without it, weigh IBR's earlier forgiveness against RAP's lower balance growth. Enter the expected yearly raise to see how quickly each payment climbs.
What the comparison assumes
Payments are on time; the rate is fixed; income rises by your expected raise each year and payments are recalculated yearly; the poverty guidelines grow with the inflation input; dependents and a spouse's loan share stay as entered; there are no deferments or forbearances. IBR's extra interest help on subsidized loans in the first three years isn't modeled. Your servicer's numbers decide. The sources and methods page lists every rule.
Common questions
Is RAP or IBR better?
It depends on your income, balance and family. RAP usually has the lower payment for middle incomes and helps borrowers who will pay the loan off, because it waives unpaid interest and matches principal. IBR forgives after 20 or 25 years instead of 30 and can be $0 at low incomes, so it often costs less in total for large balances. Run both above on your numbers.
Can I choose IBR after July 1, 2026?
Only for loans made before July 1, 2026, and only if you have no Direct Loan made on or after that date. A borrower who made 60 or more qualifying payments under SAVE on or after July 1, 2024 can't enroll in IBR.
What is the difference between old IBR and new IBR?
New borrowers, meaning those with no federal loan balance before July 1, 2014, pay 10% of discretionary income and get forgiveness after 20 years. Everyone else pays 15% and waits 25 years. Both are capped at the 10-year standard payment.
Do RAP and IBR both count toward PSLF?
Yes. Both are qualifying repayment plans for Public Service Loan Forgiveness. With PSLF the plan with the lower payments usually wins, because the balance left after 120 payments is forgiven tax-free.
Can I switch from IBR to RAP later?
A borrower on an income-driven plan can change to any other plan they are eligible for. Moving into RAP later does not lose earlier IBR payments: they count toward RAP's 360 qualifying payments. Leaving IBR capitalizes its unpaid interest.