RAP vs IBR: which is cheaper for you?

Short answer: It depends on income, family size, and balance. IBR charges 10% or 15% of discretionary income (AGI above 150% of the poverty guideline) and forgives after 20–25 years; RAP charges 1%–10% of total AGI minus $50 per dependent and forgives after 30 years, but waives unpaid interest. Lower earners with dependents often pay less on RAP; IBR's shorter clock can mean less paid overall for larger balances. New loans made on or after July 1, 2026 generally cannot use IBR.

Last verified November 5, 2026 · PSLFCheck Editorial

Side-by-side

	RAP	IBR
Payment base	1%–10% of total AGI	10% / 15% of AGI above 150% poverty line
Dependents	−$50/month each	Raise poverty-line allowance
Minimum	$10/month	$0 possible
Unpaid interest	Waived (on-time)	Partial subsidy only
Forgiveness	360 payments	20 or 25 years
PSLF	Counts	Counts
New loans after 7/1/2026	Available	Generally not

How to decide

Pursuing PSLF: pick whichever has the lower payment over your remaining months — the rest is forgiven tax-free.
Not pursuing PSLF: compare total paid over the life of the loan and the forgiven balance (which may be taxable).
Before consolidating: a new consolidation loan after July 1, 2026 can lose IBR access.

Compare RAP vs IBR with my numbers →

FAQ

Which plan has the lower monthly payment?

At low incomes with dependents, RAP usually does; at moderate incomes and smaller families, IBR can be lower. Run both in the calculator.

Can I switch from IBR to RAP later?

Eligible borrowers can generally move to RAP; moving back to IBR may not be possible for new loans. Confirm with your servicer.

Sources

Public Law 119-21 (One Big Beautiful Bill Act), Sec. 82001 — Congress.gov — accessed November 5, 2026
34 CFR 685.209 — Income-driven repayment plans (eCFR) — accessed November 5, 2026
Top FAQs About Income-Driven Repayment Plans — studentaid.gov — accessed November 5, 2026
CRS IF13075: The Repayment Assistance Plan in P.L. 119-21 — Congress.gov — accessed November 5, 2026
Edfinancial (federal servicer, studentaid.gov domain): RAP information — accessed November 5, 2026

Disclaimer: Not affiliated with the U.S. Department of Education or any loan servicer. Educational information, not financial or legal advice. Results are estimates. Confirm with studentaid.gov or your servicer. Published by PSLFCheck Editorial, AK Digital Marketing LLC.