RAP vs IBR: which costs you less?
Answer three questions to learn what your monthly bill would be under each of RAP and IBR. IBR remains available provided every one of your loans was first disbursed before July 1, 2026.
- Under RAP, the rate ranges from 1% to 10% of your whole AGI
- IBR charges either 10% or 15% on income above the line
- IBR leaves $23,940 of income alone for one person
- $10RAP has a monthly minimum, while IBR may be $0
Sources are Federal Student Aid, repayment plans and the HHS 2026 poverty guidelines.
RAP vs IBR side by side
| Rule | RAP | IBR, 10% group | IBR, 15% group |
|---|---|---|---|
| Your payment | For RAP, pay 1% to 10% of your whole AGI, less $50 each month for every dependent (RAP payment table). | Payment: 10% of income over 150% of the poverty line. | Payment: 15% of income over 150% of the poverty line. |
| Lowest bill | $10 a month | $0 | $0 |
| Capped? | No | Yes, at the 10-year Standard payment | Yes, at the 10-year Standard payment |
| Unpaid interest | RAP covers unpaid monthly interest when your full, on-time payment is lower than the interest charged. | Can add to your balance | Can add to your balance |
| Principal | Pay on time to receive a match of up to $50 monthly. | No match | No match |
| Forgiveness | After 360 payments (30 years) | After 20 years | After 25 years |
| Who can join | Parent PLUS loans are excluded, as are consolidation loans that repaid parent PLUS loans; other Direct Loan borrowers qualify. | For new-borrower status, either no federal loan balance existed on July 1, 2014 or your first borrowing came later. | Borrowed before July 1, 2014 |
All Direct Loans are limited to Tiered Standard or RAP whenever a loan receives its first disbursement on or after July 1, 2026. For either group, a new loan from that date on means IBR is closed.
Married? How does filing change the math?
Combined income is generally used for RAP when married filing jointly, with a reduction if your spouse also has federal loans. When married and filing separately, RAP counts only your income and the dependents listed on your return. Filing separately may increase your tax bill, so compare both filing choices.
Key dates that affect which plan you choose
- July 1, 2026RAP is now open
- March 10, 2026The SAVE plan closed
- July 1, 2028The PAYE and ICR options are closing
- You must move off PAYE or ICR by the June 30, 2028 deadline
Other plans you might still see
| Plan | Payment | Forgiveness or payoff | Status |
|---|---|---|---|
| PAYE | You pay 10% of discretionary income, with a maximum equal to the 10-year Standard payment amount. | After 20 years | The plan closes July 1, 2028, and you must move by the June 30, 2028 deadline. |
| ICR | Take whichever is less: 20% of discretionary income or a fixed 12-year payment adjusted to income; there's no cap. | After 25 years | The plan closes July 1, 2028, and you must move by the June 30, 2028 deadline. |
| Tiered Standard | The monthly payment is fixed, and the plan's term depends on the loan balance when it enters the plan. | The plan offers no forgiveness, and repayment takes 10 to 25 years based on the balance. | Open |
Which plan will cost you less?
At lower incomes, IBR usually wins. Your bill can be $0 because the first 150% of the poverty line is excluded. A share of every dollar is charged under RAP, with $50 off for each dependent. When you have children and a middle income, RAP often costs less. Unpaid interest is covered by RAP, which also matches principal. Each on-time payment reduces your balance. For the full details, see the IBR plan rules.
Change plans through your servicer
Apply once online using the income-driven repayment form on studentaid.gov. Plans that base your payment on your income use this form. Select RAP.
The company that sends your loan bill, your servicer, processes the plan change and then sends the new bill.
Your servicer requests your income again every year. Provide your income so your payment remains correct.
Common questions
Is IBR still available to me?
Yes, provided every loan of yours was first disbursed before July 1, 2026. From that date, one new loan means all your Direct Loans can use only RAP or the Tiered Standard Plan.
Does the size of your family affect IBR?
Yes. For every family member, IBR leaves more of your income alone. Your family count includes you and your dependents.
Does IBR have a payment cap?
The charge under IBR can't exceed the 10-year standard payment. Unlike RAP, which has no cap, IBR may cost less when your income is high.