Side by side
| RAP | IBR | |
|---|---|---|
| Income counted | All of your AGI | AGI above 150% of the poverty line for your family size |
| Rate | 1%–10% depending on AGI band | 10% (15% if you owed a federal student loan on July 1, 2014) |
| Family | $50 off per dependent | Family size raises the poverty-line allowance |
| Lowest payment | $10 | $0 |
| Highest payment | No cap tied to your balance | Never more than the 10-year standard payment |
| Unpaid interest | Waived each on-time month | Builds up (waived for 3 years on subsidized loans only) |
| Forgiveness | 360 payments, at least 30 years | 240 payments (20 years); 300 (25 years) for older borrowers |
| Who can use it | Most Direct Loan borrowers | Only borrowers with no loan paid out on or after July 1, 2026 |
Where IBR comes out lower
IBR protects 150% of the poverty line. In 2026 that is $23,940 for a household of one and $49,500 for four in the 48 states. Income under that line produces a $0 IBR payment, while RAP never goes below $10. Households with several children and modest income often see a lower IBR payment.
Where RAP comes out lower
RAP’s percentage is small at lower bands, and its interest waiver and $50 principal match keep the balance from growing when payments are small. In the calculator, single borrowers with mid-range incomes often see RAP start lower than IBR.
The trade-off in time
RAP’s forgiveness comes after 30 years, IBR’s after 20 or 25. A lower payment over a longer stretch can still mean more paid in total. The calculator shows both the first payment and the total.
Switching
If you can use IBR and you enroll in RAP, StudentAid.gov says you may go back to IBR later, but payments made under RAP do not count toward IBR forgiveness. Progress earned under IBR does count toward RAP’s 360 payments.
Who can’t use IBR at all
Anyone with a Direct Loan first paid out on or after July 1, 2026. For them the choice is RAP or Tiered Standard.
Not financial or legal advice. This page explains the published rules. It does not tell you which plan to choose. Your loan servicer and StudentAid.gov have the final word on your account.
Official sources
- Public Law 119-21 (H.R. 1, signed July 4, 2025), Title VIII, Secs. 81001–82004
- 34 CFR 685.209, income-driven repayment plans (current eCFR, as amended May 1, 2026)
- 20 U.S.C. 1098e, income-based repayment (Cornell LII copy of the U.S. Code)
- HHS/ASPE: 2026 Poverty Guidelines
- StudentAid.gov: One Big Beautiful Bill Act – Important Definitions (updated Aug. 24, 2026)
Last verified Oct 17, 2026. Corrections are logged on What changed.
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