IBR usually wins at low incomes and for large balances: it charges 10% of income above 150% of the poverty line (15% for pre-July-2014 borrowers), can be $0, is capped at the 10-year standard payment and forgives the rest after 20 years (25 for older borrowers). RAP often wins in a middle income band: its 1%–10% of total AGI can come in below IBR’s 10% of discretionary income, and its interest waiver and $50 principal match keep the balance from growing — but forgiveness takes 30 years.
IBR vs RAP rules side by side
| Feature | IBR (new borrower) | RAP |
|---|---|---|
| Payment | 10% of AGI above 150% of poverty line (15% for loans before July 2014) | 1%–10% of total AGI by $10k bracket |
| Minimum | $0 possible | $10 a month |
| Dependents | Raise the poverty-line deduction | −$50 a month each |
| Payment cap | 10-year standard amount | None described in the law summaries we checked |
| Unpaid interest | Accrues (subsidized loans: 3-year subsidy) | Waived; plus $50 principal match |
| Forgiveness | 20 years (25 for older loans) | 360 payments (30 years) |
| Who can enroll | Loans disbursed before July 1, 2026 | All Direct Loans except Parent PLUS |
| PSLF | Counts | Counts |
One more 2025 change matters: OBBBA removed IBR’s old partial financial hardship entry test, so borrowers whose income was “too high” for IBR can now enroll (FSA, GEN-25-04).
Monthly payment comparison by income
Example: $60,000 of graduate loans at 8.07%. IBR uses the 2026 HHS poverty guideline ($15,960 for one person, +$5,680 per extra person) — servicers use the guideline in effect when you certify, so treat these as estimates.
| AGI | IBR single | RAP single | IBR family of 3 | RAP, 2 dependents |
|---|---|---|---|---|
| $25,000 | $9 | $42 | $0 | $10 |
| $35,000 | $92 | $88 | $0 | $10 |
| $45,000 | $176 | $150 | $34 | $50 |
| $60,000 | $301 | $250 | $159 | $150 |
| $75,000 | $426 | $438 | $284 | $338 |
| $90,000 | $551 | $600 | $409 | $500 |
| $110,000 | $717 | $917 | $575 | $817 |
| $140,000 | $730 | $1,167 | $730 | $1,067 |
For a single borrower the winner flips back and forth. At the lowest incomes IBR is cheaper — at $25,000 it is $9 vs $42 on RAP — because the poverty-line deduction shields the first $23,940. Between roughly $30,000 and $80,000, RAP’s lower bracket percentages often make it the cheaper plan, though bracket jumps can flip individual incomes (at $45,000: $150 vs $176). Above that, RAP’s rate climbs to 10% of total AGI and IBR wins again, by a wide margin once IBR’s cap at the standard payment ($730 here) kicks in. For a family of three, IBR’s larger poverty-line deduction wins at the bottom, the two plans run close in the middle, and IBR’s cap wins at the top — check the table at your own income.
20-year IBR vs 30-year RAP: total cost
Monthly payment is only half the story. IBR forgives after 20 years; RAP runs up to 30 years but stops interest from piling up. Our projections for $60,000 at 8.07% (income +3% a year):
| Scenario | IBR first pmt | IBR total paid | IBR forgiven* | RAP first pmt | RAP total paid | RAP forgiven* |
|---|---|---|---|---|---|---|
| AGI $45,000, household of 1 | $176 | $59,763 | $97,077 | $150 | $131,075 | $0 (paid off 28 yr 1 mo) |
| AGI $80,000, household of 1 | $467 | $111,064 | $0 | $467 | $97,620 | $0 (paid off 11 yr 7 mo) |
| AGI $45,000, household of 3 | $34 | $16,235 | $140,605 | $50 | $115,776 | $3,986 |
*Forgiveness under both plans is taxable federal income under current law (PSLF is the exception). A large forgiven IBR balance can therefore create a significant tax bill in year 20.
Check what fits your take-home payRun your salary through the paycheck calculator to see how much a student loan payment leaves for everything else.
Which plan should you choose?
- Pursuing PSLF? Pick whichever gives the lower payment — both count, and the rest is forgiven tax-free after 120 payments.
- Low income, large balance, no PSLF: IBR’s lower payments and 20-year forgiveness usually cost less in total, even after the tax on forgiveness.
- Moderate income: compare both — bracket jumps mean either plan can be lower, and RAP’s interest waiver matters if your payment is below the monthly interest.
- High income relative to debt: IBR’s cap at the standard payment makes it cheaper than RAP’s uncapped 10%; a standard plan or refinancing may be cheaper still.
- New loans after July 1, 2026: IBR is no longer available for them — your choices are RAP or the Tiered Standard plan.
Frequently asked questions
Is IBR still available in 2026?
Yes, for borrowers whose loans were all disbursed before July 1, 2026. Loans made on or after that date can only use RAP or the Tiered Standard plan.
Which is cheaper, IBR or RAP?
It depends on income and family size. IBR is usually cheaper for low-income single borrowers and very high earners (because of its cap); RAP is often cheaper in a middle-income band (roughly $30,000–$80,000 for a single borrower), though it varies by bracket.
How long until forgiveness on IBR vs RAP?
IBR forgives after 20 years for borrowers who first borrowed after July 1, 2014 (25 years for earlier borrowers). RAP forgives after 360 qualifying payments, or 30 years.
Do I still need a partial financial hardship for IBR?
No. The One Big Beautiful Bill Act removed the partial financial hardship requirement to enroll in IBR.
Do IBR and RAP count for PSLF?
Yes. Payments under both plans count toward the 120 qualifying payments for Public Service Loan Forgiveness.
Related student loan guides
- RAP explainedPayment chart, $50 match, 30-year forgiveness
- SAVE plan ended: what now?Deadlines and your options
- PSLF basics 2026120 payments, tax-free forgiveness
- Is forgiveness taxable?The 2026 IDR tax bomb
- Tiered Standard plan10, 15, 20 or 25 years by balance
- Extended vs graduatedOptions for pre-2026 loans
- Monthly payment on $40,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $60,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $100,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- FSA Dear Colleague Letter GEN-25-04, “Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act” (July 18, 2025).
- U.S. Department of Education, “Fact Sheet: Trump Administration Simplifying Student Loan Repayment” (ed.gov, page reviewed June 11, 2026).
- NerdWallet, “What Is the New Repayment Assistance Plan (RAP)?” (updated July 30, 2026) — RAP AGI brackets.
- U.S. HHS (ASPE), 2026 Poverty Guidelines, 48 contiguous states.
- NASFAA (Jan 7, 2026) and Student Loan Planner (July 30, 2026): IDR forgiveness taxable federally from 2026; PSLF forgiveness tax-free.
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.