RAP vs IBR vs Refinance Calculator
The Repayment Assistance Plan (RAP) is live for Direct Loans from 1 July 2026, and millions of borrowers leaving SAVE must choose a new plan. This tool doesn't just show the RAP payment — it tells you which plan to pick and why, including the traps most calculators miss.
Enter your income, family size, and federal loan balance to compare RAP, IBR, the 10-year Standard plan, and an optional refinance. RAP charges 1–10% of AGI (minus $50 per dependent, $10 floor) and forgives after 30 years; IBR charges 10–15% of discretionary income and forgives after 20–25 years. The tool recommends a plan and flags Parent PLUS ineligibility and taxable forgiveness.
Compare a private refinance offer (optional)
Enter your income and federal loan balance to compare RAP, IBR, the 10-year Standard plan, and an optional refinance — with a plain-English recommendation.
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How to use RAP vs IBR Calculator
- 1Enter your adjusted gross income (AGI), family size, and dependents.
- 2Enter your federal loan balance and weighted interest rate.
- 3Set your IBR rate tier, and whether you have Parent PLUS loans, a post-July-2026 loan, or are pursuing PSLF.
- 4Optionally add a private refinance quote to compare, then read the recommendation and warnings.
How RAP is calculated
RAP (created by P.L. 119-21) charges a percentage of your adjusted gross income (AGI): a flat $10/month at or below $10,000 of AGI, then 1% from $10,001–$20,000, rising one percentage point per $10,000 bracket, capped at 10% above $100,000. The result is divided by 12, reduced by $50 for each dependent, with a $10/month floor.
RAP also subsidises any unpaid interest and matches principal by up to $50/month, so even a small payment reduces your balance. Any remaining balance is forgiven after 30 years (360 qualifying payments).
How RAP differs from IBR — the traps
IBR charges 10% of discretionary income (first loan on/after 1 July 2014) or 15% (before), where discretionary income is your AGI minus 150% of the federal poverty guideline for your family size, and it's never more than the 10-year Standard payment. IBR forgives after 20 or 25 years.
The traps most calculators skip: Parent PLUS loans (and consolidations that repaid one) can't use RAP; RAP's and IBR's forgiveness are currently taxable, while PSLF forgiveness is tax-free; and if your first federal loan is dated on/after 1 July 2026, IBR is closed to you — your only choices are RAP or the new Tiered Standard plan. Time already spent in IBR may count toward RAP's clock, but RAP months don't count toward IBR forgiveness.
Should you refinance?
Refinancing federal loans into a private loan can lower your rate, but it permanently gives up IDR plans, PSLF, forgiveness, and federal deferment/forbearance protections. It usually only makes sense for high earners with a stable income who won't use forgiveness. Enter a real quote to see the monthly payment side by side.
Frequently Asked Questions
Is RAP better than IBR?
It depends. RAP often has a lower payment at higher incomes and always shrinks your balance thanks to its interest subsidy and principal match, but it takes 30 years to forgive versus IBR's 20–25. If you're pursuing PSLF, pick whichever qualifying plan has the lowest payment — forgiveness at 120 payments is tax-free either way.
Can Parent PLUS loans use RAP?
No. Parent PLUS loans are excluded from RAP, and a Direct Consolidation Loan that repaid a Parent PLUS loan is also excluded. Those borrowers typically use Income-Contingent Repayment (ICR) or the new Standard plan instead.
Is student loan forgiveness taxable?
Under current federal law, RAP's 30-year forgiveness and IBR's 20/25-year forgiveness are treated as taxable income in the year granted. Only PSLF forgiveness is tax-free. Tax law can change, so confirm before you rely on it.
I was in SAVE — how long do I have to choose?
Borrowers being moved out of SAVE generally have a window after their servicer's notice to select a new plan. Check your servicer account for your exact deadline; this tool helps you decide which plan to pick.
Is my financial data uploaded anywhere?
No. Every calculator on this site runs entirely in your browser — nothing you enter is sent to a server.