RAP vs IBR: Which Plan Is Better?

SAVE is gone. For most federal borrowers the choice now comes down to two plans. Here is the plain English comparison.

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.