RAP payments are a tiered percentage (1%–10%) of your total AGI, with a $10 monthly minimum, a $50/dependent reduction, waived unpaid interest, and 30-year forgiveness. IBR payments are 10% or 15% of discretionary income (AGI minus 150% of the poverty line for your family size), can be as low as $0, are capped at the 10-year standard amount, and forgive after 20 or 25 years.
2026 · The SAVE era is over
RAP vs IBR — which plan saves you more
For one borrower with $32,000 owed and $48,000 of AGI, RAP is about $160.00 a month for 30 years and IBR is about $200.50 a month for 20 years. RAP is lower this month. IBR costs less in total. Enter your own numbers and both figures follow.
7.5 million SAVE borrowers are being moved off the plan. When your servicer's notice arrives you have 90 days to choose — otherwise you're auto-enrolled in RAP.
Existing SAVE / PAYE / ICR borrowers must transition by July 1, 2028.
Calculator
RAP and IBR, from the same figures
A worked example is already filled in. Change either number — nothing is saved.
This month
RAP
Cheaper this month
$160.00/mo
IBR
$200.50/mo
Until it ends
RAP
$57,600.00
30 yrs (360 payments) · $11,290.86 forgiven
IBR
$48,120.00
20 yrs (240 payments) · $18,676.90 forgiven
Both bars use the same scale.
RAP is about $40.50 less per month ($160.00 vs $200.50), and IBR costs about $9,480.00 less in total (RAP $57,600.00, IBR $48,120.00).
RAP $160.00 versus IBR $200.50.
RAP waives unpaid interest each month — your balance never grows while you pay less than the interest. If an on-time payment reduces principal by less than $50, ED matches the shortfall (up to the lesser of $50 or that payment).
Assumes your AGI and family size stay constant — payments are recalculated every year from your tax return. Servicers round payments to the nearest $5. This is an estimate, not financial advice.
Last updated September 29, 2026. Sources: StudentAid.gov and 34 CFR 685.209.
How the two plans are calculated
No black box here — this is exactly what goes into each number, straight from the federal statute.
RAP uses your total AGI. The applicable percentage (1%–10% by $10,000 band, or $120/year at $10,000 or less) applies to all of that AGI — so $60,000 is 5% → $250/mo, $100,000 is 9% → $750/mo, $120,000 is 10% → $1,000/mo before dependent reductions. Subtract $50 per dependent, never below $10. Unpaid interest is waived. If an on-time payment reduces principal by less than $50, the Department of Education matches the shortfall up to the lesser of $50 or that month's payment. Remaining balance is forgiven after 30 years.
IBR uses discretionary income: AGI minus 150% of the 2026 federal poverty line for your family size ($15,960 for a one-person household in the 48 contiguous states; 150% of poverty for a family of 4 is $49,500). Post-July-2014 loans pay 10% of discretionary income and forgive after 20 years; older loans pay 15% and forgive after 25 years. Payments are capped at the 10-year standard amount, and can be $0. OBBBA removed the partial-financial-hardship test for IBR enrollment. Unlike RAP, unpaid interest is not fully waived, so low payments can let the balance grow.
RAP is the only IDR plan for loans first disbursed on or after July 1, 2026; borrowers with older loans choose between RAP and IBR.
RAP annual payment chart
| AGI (prior-year return) | Annual payment | ≈ Monthly |
|---|---|---|
| $10,000 or less | $120 | $10 |
| $10,001–$20,000 | 1% of AGI | $10.00–$16.67 |
| $20,001–$30,000 | 2% of AGI | $33.34–$50.00 |
| $30,001–$40,000 | 3% of AGI | $75.00–$100.00 |
| $40,001–$50,000 | 4% of AGI | $133.34–$166.67 |
| $50,001–$60,000 | 5% of AGI | $208.34–$250.00 |
| $60,001–$70,000 | 6% of AGI | $300.01–$350.00 |
| $70,001–$80,000 | 7% of AGI | $408.34–$466.67 |
| $80,001–$90,000 | 8% of AGI | $533.34–$600.00 |
| $90,001–$100,000 | 9% of AGI | $675.01–$750.00 |
| Over $100,000 | 10% of AGI | $833.34+ |
Each percentage applies to all of AGI in that band (34 CFR 685.209(b)(2)), not only the amount above the band floor. Monthly figures include the $10 floor and exclude the −$50/dependent reduction. Examples: AGI $60,000 → 5% → $250/mo; $100,000 → 9% → $750/mo; $120,000 → 10% → $1,000/mo.
Frequently asked questions
Frequently asked questions
The five questions every borrower asks us.
Sources & disclaimer
Last updated: September 29, 2026. Formulas follow 34 CFR 685.209 and the One Big Beautiful Bill Act (P.L. 119-21) §80503; IBR partial-financial-hardship removal per FSA Partners Dear Colleague Letter (July 18, 2025); poverty lines are the HHS 2026 Federal Poverty Guidelines (91 FR 1797); matching principal per 34 CFR 685.209(o)(2) and CRS IF13075 / R48727. Transition deadlines per Department of Education guidance and CNBC (Sept 2026). This site is independent, not affiliated with the U.S. Department of Education, and provides estimates for informational purposes only — not legal, tax, or financial advice.
34 CFR 685.209OBBBA §80503HHS 2026 Poverty GuidelinesFSA DCL 18 Jul 2025CRS IF13075