🎓 Repayment Plans
RAP vs IBR: Which Student Loan Repayment Plan Fits You?
Short answer: RAP and IBR are both income-driven plans, but they work differently. RAP bases payments on adjusted gross income, has a $10 minimum, and adds an interest waiver and principal match, with cancellation after 30 years. IBR bases payments on discretionary income, can be lower for some borrowers, and may cancel balances sooner. Run both in the Loan Simulator before you choose.
The two plans in plain English
RAP is the new Repayment Assistance Plan that opened July 1, 2026. IBR (Income-Based Repayment) has existed for years and remains available. Since July 2025 the old requirement to show a “partial financial hardship” to enter IBR has been removed, so more borrowers can use it. New to the topic? Start with federal repayment plans in 2026.
Side-by-side comparison
| Feature | RAP | IBR |
|---|---|---|
| Payment basis | Percentage of adjusted gross income (AGI) | Percentage of discretionary income (income above a protected amount) |
| Minimum payment | $10 a month | Can be as low as $0 for some borrowers |
| Dependents | $50 off the monthly payment per dependent | Family size affects the protected income amount |
| Unpaid interest | Waived when you pay in full and on time | Depends on the plan; interest may build |
| Principal help | Matching payment so principal falls by up to $50 a month | None |
| Cancellation | After 30 years | After 20 or 25 years, depending on when you first borrowed |
| Payment cap | No cap tied to the standard plan | Capped at the 10-year standard payment |
| Parent PLUS | Not eligible | Possible only in limited situations |
Details vary by loan type and when you first borrowed. Confirm your own terms on StudentAid.gov.
When RAP may be the better fit
- You have a low income and several dependents, which can push the payment toward the $10 minimum.
- Your payment would not cover your monthly interest, so the interest waiver and principal match help.
- You took out a new federal loan on or after July 1, 2026 and RAP is your only income-driven choice.
When IBR may be the better fit
- Your income is higher and the IBR payment cap keeps your bill below RAP.
- You want a shorter cancellation timeline of 20 or 25 years.
- Your discretionary-income formula gives a lower payment than a percentage of AGI.
Hypothetical example: Two borrowers owe the same balance. One has an AGI near $30,000 with two dependents, so RAP may be very low. The other earns more, so IBR’s cap may beat RAP. Which one saves money depends on your own numbers, which is why the official Loan Simulator matters.
How to decide
- Pull up your loans. See how to find your servicer and loans.
- Run RAP and IBR in the Loan Simulator, then compare monthly payment, total paid and the cancellation date.
- If you plan to work in public service, check how each plan counts toward PSLF.
- Apply for the plan you chose. See how to apply for RAP.
If neither plan makes payments affordable, review how to lower student loan payments.
Common mistakes
- Choosing a plan only by the lowest payment this month, without looking at total cost.
- Assuming switching plans never affects forgiveness progress. Ask your servicer how progress is counted.
- Using a paid service for a free application. See scam warning signs.
Rules change. This guide was reviewed on October 22, 2026 against official sources. Federal student-loan programs, deadlines and court-driven changes can shift quickly, so confirm current details at StudentAid.gov before you act.
Frequently asked questions
Official sources and references
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