RAP vs IBR: Which Student Loan Plan Is Better?
SAVE is gone. For most federal borrowers the choice now comes down to two student loan plans. Here is the simple comparison with a free RAP plan calculator.
The 2025 law ended SAVE, PAYE, and ICR for new enrollment. Two income driven options remain. RAP, the new Repayment Assistance Plan that opened July 1, 2026. And IBR, the older Income Based Repayment plan. Borrowers on the old plans must move by 2028.
How each plan calculates your payment
RAP charges 1% to 10% of your total AGI. The rate rises with income. Earn $48,000 and you pay 4%, about $160 a month. Every dependent cuts $50 off the monthly payment. Minimum payment is $10.
IBR charges 15% of your discretionary income, or 10% if you first borrowed after July 2014. Discretionary means income above 150% of the poverty line. Earn $48,000 as a single person and new borrower IBR runs roughly $210 a month.
Forgiveness timelines
IBR forgives your balance after 20 or 25 years, depending on when you borrowed. RAP takes 30 years. That is the biggest tradeoff. RAP often has the lower monthly payment. IBR ends 5 to 10 years sooner.
RAP's two protections
RAP has features IBR lacks. Unpaid interest is waived, so your balance never grows. And RAP guarantees at least $50 of principal reduction each month, with the government covering the gap. On IBR, low payments can leave your balance climbing for years.
Quick guidance
Lower income, kids, or a big balance? RAP usually wins on monthly cost, and the no growing balance rule protects you. Higher income and chasing forgiveness? IBR's shorter clock may beat RAP's smaller payment. Working toward PSLF? Both plans count, so pick the lower payment, which is usually RAP.
One more option is worth checking. The standard 10 year plan is often cheapest in total interest if you can afford it.
Get your numbers first
Guessing is how people lose money on this choice. Our free RAP calculator shows your monthly payment and compares it to the standard plan in seconds. No signup needed.
Frequently asked questions
Is RAP or IBR cheaper per month?
RAP is usually cheaper. At $48,000 income RAP charges about $160 a month while IBR charges roughly $210. The gap widens at lower incomes and with dependents. Try the RAP calculator with your numbers.
Which plan forgives loans faster?
IBR forgives after 20 or 25 years. RAP takes 30 years. IBR's shorter clock is its biggest advantage over RAP.
Can my balance grow on RAP?
No. RAP waives unpaid interest and guarantees at least $50 of principal reduction each month. On IBR, low payments can cause your balance to grow. See RAP payment examples at every income level.
What happened to SAVE, PAYE, and ICR?
The 2025 law ended them for new enrollment. Borrowers currently on those plans must switch to RAP or IBR by 2028. Read what to do now that SAVE is gone.