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.