RAP vs IBR: Which Student Loan Plan Is Better?
RAP and IBR are both income-driven repayment plans for federal student loans, but they calculate your payment very differently. Enter your details below to see a side-by-side comparison and find out which plan saves you the most.
Enter Your Details
RAP Monthly Payment
$166.67
4% of AGI
IBR Monthly Payment
$221.04
10% of discretionary income
RAP saves you $54.37/month ($652.44/year) compared to IBR.
| Feature | RAP | IBR |
|---|---|---|
| Monthly Payment | $166.67 | $221.04 |
| Annual Payment | $2,000.04 | $2,652.48 |
| Forgiveness Timeline Years until remaining balance is forgiven | 30 years | 20 years |
| Payment Cap Maximum payment regardless of income | No cap | Capped at Standard Plan |
| Interest Subsidy Government covers unpaid interest to prevent balance growth | Yes | First 3 years only (subsidized loans) |
| Principal Match Government contributes toward principal reduction | $50/mo match | None |
| Minimum Payment | $10/mo | $0/mo |
| Calculation Method | % of total AGI (1%–10%) | Discretionary income based |
Which Plan Is Right for You?
RAP may be better if you…
- ✓Have a lower AGI and want the simplest calculation
- ✓Want the interest subsidy to prevent balance growth
- ✓Want the $50/month government principal match
- ✓Are pursuing PSLF (both plans qualify)
IBR may be better if you…
- ✓Have a large family (higher FPL exclusion)
- ✓Want a payment cap at the standard plan level
- ✓Want faster forgiveness (20 or 25 years vs. 30)
- ✓Have a very low income and need $0 payments
Important: Lower monthly payments don't always mean less total cost. A longer repayment timeline means more interest accrues. If you qualify for PSLF, both plans offer 10-year forgiveness, making monthly payment the key comparison. Otherwise, weigh the forgiveness timeline against total payments over the life of the loan.
Sources & Methodology
All calculations on this site are based on publicly available federal legislation and official government data. Our formulas are derived directly from the statutory text and are executed entirely in your browser — we never collect or store your financial information.
- ●P.L. 119-21 — One Big Beautiful Bill Act
RAP payment brackets, dependent deductions, interest subsidy rules, and forgiveness timeline are codified in this law. Read on Congress.gov →
- ●Federal Student Aid (studentaid.gov)
Official information on federal student loan programs, IDR plan eligibility, PSLF requirements, and loan consolidation. Visit studentaid.gov →
- ●2026 HHS Federal Poverty Guidelines
IBR calculations use the Federal Poverty Level published annually by the U.S. Department of Health and Human Services. Our calculators use the 2026 poverty guidelines for the contiguous 48 states. View HHS guidelines →
Calculator results are estimates only. Your actual payment may vary based on your loan servicer's implementation, recertification timing, and other factors. Always confirm with your servicer before making repayment decisions.