RAP vs SAVE: What SAVE Borrowers Should Do in 2026

The short answer: SAVE is not coming back. If you were on SAVE, your loans have been parked in an interest-free forbearance that is winding down, and you will need to choose a new plan. For most former SAVE borrowers the real choice is RAP or IBR, and which one wins depends on your income, your family size, and how close you are to forgiveness.

Where SAVE stands now

SAVE is over. It was retired after losing in court, and the One Big Beautiful Bill sunset it for good. Roughly 7 million borrowers were parked in an interest-free forbearance, and that forbearance is now ending. Servicers begin sending 90-day switch notices on July 1, 2026; some end as early as September 30, 2026, with the rest rolling out through March 2027. If you do nothing, you are automatically moved to Standard Repayment, which usually means a higher payment and no forgiveness credit.

RAP: the new default

RAP charges a tiered 1% to 10% of your full AGI, minus $50 per month per dependent, with a $10 floor. It waives unpaid interest every month and credits at least $50 to principal, so your balance stops growing. Forgiveness comes at 30 years, and every payment counts toward PSLF. One thing to know going in: once you start RAP, you cannot switch back to the Standard Plan.

IBR: still open, still worth checking

IBR is the only legacy income-driven plan the OBBB left open, which makes it the stable landing spot if you need to move now. It charges 10% to 15% of discretionary income (AGI minus 150% of the poverty line) and forgives at 20 or 25 years. Every IBR payment also counts toward PSLF.

Which one is cheaper for you

It depends on numbers specific to you: your AGI, your family size, your balance, and how many qualifying payments you already have. A lower earner or someone with a family often pays less on IBR, because IBR shelters 150% of the poverty line and RAP does not. Someone focused on stopping their balance from growing may prefer RAP’s interest waiver. For higher earners it can flip either way, since IBR is capped at the 10-year Standard payment. The gap can be hundreds of dollars a month, so this is worth getting right instead of guessing.

Do not give up your forgiveness credit

One caution for SAVE borrowers: whether your time in the SAVE forbearance counts toward forgiveness depends on your situation, and switching plans can reset some clocks if you are not careful. If you are chasing PSLF or are years into an income-driven plan, check the credit implications before you move. The simulator flags this, and it is exactly what an advisor earns their keep on.