How to use this calculator
- Enter your federal student loan balance and interest rate. Private loans can’t use RAP or IBR, so leave them out. To plan payoff of private loans or cards, use the debt payoff calculator.
- Enter your adjusted gross income from your latest tax return and your filing status. RAP uses the same AGI that’s on your return, not your salary before retirement contributions.
- Enter the dependents you claim on your tax return.
- Choose when you first borrowed. It decides which plans you can use and which version of IBR applies.
- Set how fast your income grows. Income-driven payments are recalculated every year, so a rising income means rising payments.
The comparison assumes every payment is made on time, your interest rate stays the same and the poverty guideline rises 2.5% a year. It leaves out deferment, forbearance and the IBR interest subsidy for subsidized loans. Buying a home? See how lenders calculate DTI for how they count student loan payments.
How RAP payments are calculated
RAP charges a percentage of your whole adjusted gross income, not just the income above a poverty-line allowance like the older income-driven plans. The percentage rises one point for each $10,000 of AGI:
| Adjusted gross income | Percentage of AGI | Monthly payment before the dependent credit |
|---|---|---|
| $10,000 or less | $10 a month | $10 |
| $10,001 to $20,000 | 1% | $8.33 to $16.67 |
| $20,001 to $30,000 | 2% | $33.33 to $50.00 |
| $30,001 to $40,000 | 3% | $75.00 to $100.00 |
| $40,001 to $50,000 | 4% | $133.33 to $166.67 |
| $50,001 to $60,000 | 5% | $208.33 to $250.00 |
| $60,001 to $70,000 | 6% | $300.00 to $350.00 |
| $70,001 to $80,000 | 7% | $408.33 to $466.67 |
| $80,001 to $90,000 | 8% | $533.33 to $600.00 |
| $90,001 to $100,000 | 9% | $675.00 to $750.00 |
| Over $100,000 | 10% | $833.33 or more |
Because the percentage applies to all of your income, crossing into a new bracket raises the payment noticeably: $50,000 of AGI costs $166.67 a month, while $50,001 costs $208.34. The brackets aren’t adjusted for inflation, so as your income rises over the years, you’ll gradually pay a higher percentage.
RAP payments by income and dependents
Monthly RAP payment for common incomes, before any split with a spouse who also has loans:
| AGI | Rate | No dependents | 1 dependent | 2 dependents | 3 dependents |
|---|---|---|---|---|---|
| $15,000 | 1% | $12.50 | $10.00 | $10.00 | $10.00 |
| $25,000 | 2% | $41.67 | $10.00 | $10.00 | $10.00 |
| $35,000 | 3% | $87.50 | $37.50 | $10.00 | $10.00 |
| $45,000 | 4% | $150.00 | $100.00 | $50.00 | $10.00 |
| $55,000 | 5% | $229.17 | $179.17 | $129.17 | $79.17 |
| $65,000 | 6% | $325.00 | $275.00 | $225.00 | $175.00 |
| $75,000 | 7% | $437.50 | $387.50 | $337.50 | $287.50 |
| $85,000 | 8% | $566.67 | $516.67 | $466.67 | $416.67 |
| $95,000 | 9% | $712.50 | $662.50 | $612.50 | $562.50 |
| $110,000 | 10% | $916.67 | $866.67 | $816.67 | $766.67 |
| $150,000 | 10% | $1,250.00 | $1,200.00 | $1,150.00 | $1,100.00 |
The interest waiver and $50 principal match
Two features stop RAP balances from growing the way they often did under older income-driven plans. Both apply only to months when you pay in full and on time:
- Interest waiver. If your payment doesn’t cover the interest charged that month, the unpaid interest is waived rather than added to what you owe.
- Principal match. If your payment reduces your principal by less than $50, the government pays the difference, up to $50 or the amount of your payment if that’s smaller. So an on-time payment always shrinks your balance.
Example: $40,000 at 6.5% charges about $216.67 of interest a month. A single borrower with $50,000 of AGI pays $166.67 on RAP. The whole payment goes to interest, the remaining $50.00 of interest is waived, and the government adds $50 toward principal, so the balance falls by $50 that month instead of rising.
RAP vs. IBR vs. the standard plan
For the same single borrower, with income rising 3% a year and every payment on time:
| Plan | First monthly payment | Time to pay off or forgiveness | Total paid | Forgiven |
|---|---|---|---|---|
| Repayment Assistance Plan (RAP) | $166.67 | 17 years 9 months | $70,350 | None |
| Income-based repayment (IBR, 10%) | $217.17 | Forgiven after 20 years | $73,198 | $7,016 |
| Standard plan (10 years) | $454.19 | 10 years | $54,503 | None |
IBR’s payment for this borrower is 10% of the income above 150% of the poverty guideline ($23,940 for one person in 2026): 10% × ($50,000 − $23,940) ÷ 12 = $217.17. The 10-year standard payment is $454.19. In this example RAP has the lowest payment, IBR forgives $7,016 after 20 years, and the standard plan costs the least in total ($54,503) because it pays the loan off fastest. RAP pays this loan off in 17 years 9 months.
Some rules of thumb:
- RAP tends to win for single borrowers with modest incomes, borrowers with several dependents, and anyone whose payment wouldn’t cover the interest, because the waiver and match keep the balance falling.
- IBR tends to win for larger households with incomes near the poverty line (IBR ignores the first 150% of the poverty guideline), for high balances relative to income, because it forgives the rest after 20 or 25 years, and for high earners, because IBR never charges more than the 10-year standard payment. RAP has no cap.
- The standard plan costs the least in total if you can afford it and don’t expect forgiveness.
Who can use RAP, and when
- RAP opened on July 1, 2026 for Direct Loan borrowers.
- Loans made on or after July 1, 2026 can be repaid only through RAP or the new tiered standard plan, which spreads fixed payments over 10 to 25 years depending on the balance: 10 years under $25,000, 15 years under $50,000, 20 years under $100,000 and 25 years above that.
- Existing borrowers can switch to RAP or stay in IBR or the standard plan. The SAVE plan has ended, and borrowers in PAYE or ICR must move to RAP or IBR by July 1, 2028; anyone who doesn’t choose is moved automatically.
Switching plans doesn’t forgive anything, so compare the monthly payment and the total cost before you move. Your servicer’s estimate is the one that counts; it uses the exact figures on your account.
Married borrowers
If you file a joint return, RAP and IBR use your combined AGI. If your spouse also has federal student loans, the household payment is split between you in proportion to each spouse’s share of the total balance. If you file separately, only your own income and the dependents on your return count, which can lower the payment but often raises your taxes. Compare both before you choose.
Forgiveness, PSLF and taxes
RAP forgives any balance left after 360 qualifying payments (30 years). IBR forgives the rest after 20 years for people who first borrowed on or after July 1, 2014, or 25 years for earlier borrowers.
The federal tax exclusion for this kind of forgiveness expired on December 31, 2025, so under current law a balance forgiven at the end of RAP or IBR counts as taxable income. Forgiveness under Public Service Loan Forgiveness stays tax-free, as do discharges for death or total and permanent disability. On-time RAP and IBR payments both count toward the 120 payments PSLF requires; payments under the tiered standard plan don’t. If you’re working toward PSLF, the plan with the lowest monthly payment is usually the best choice.
Poverty guideline used for IBR: $15,960 for one person in 2026, plus $5,740 for each additional person, in the 48 contiguous states and D.C. Alaska and Hawaii have higher guidelines, which lower IBR payments.
Frequently asked questions
How is the RAP payment calculated?
What is the minimum payment on RAP?
Is RAP better than IBR?
Does RAP count toward Public Service Loan Forgiveness?
When does RAP forgive the remaining balance?
What happens if I pay late on RAP?
Sources
- The Repayment Assistance Plan (RAP) in P.L. 119-21, the FY2025 reconciliation law — Congressional Research Service
- Public Law 119-21 (One Big Beautiful Bill Act) — Congress.gov
- Repayment Assistance Plan (RAP) — Edfinancial Services (federal loan servicer)
- Fact sheet: making higher education more affordable and simplifying student loan repayment — U.S. Department of Education
- HHS poverty guidelines — U.S. Department of Health and Human Services
- Welcome to 2026: some student loan forgiveness is now taxable — National Association of Student Financial Aid Administrators