RAP is usually the lower monthly payment below roughly $70,000 of income, and IBR is usually the lower monthly payment above it. Lifetime cost can run the other way, because IBR forgives what is left at month 240 and RAP runs to month 360. The table below is computed, not estimated, and the calculator underneath runs your own numbers.
All figures on this page computed on September 4, 2026 with the parity verified Finology Software engine (engine date 2026-09-04). Estimates for planning only, not advice.
For borrowers
Keep track of your own loans. A free borrower account puts every loan in one place, and you can find a student loan advisor when you want one.
For advisors
Choosing between RAP and IBR for a client? Finology Software reads the client’s federal loan file, compares RAP and IBR with the payment and lifetime cost side by side, and produces the report you hand them.
Run your own numbers
The calculator below uses the same engine as the tables below. It compares Standard, RAP, IBR, PAYE and ICR side by side, shows PAYE on the stated assumption that you are a PAYE new borrower, and lists any plan your loan cannot elect under Not shown with the reason rather than quoting a payment you cannot get.
How do RAP and IBR compare at different incomes?
Across a $60,000 Direct Unsubsidized balance at 6.5%, RAP starts lower and IBR overtakes it as income rises. The crossover in this scenario sits between $70,000 and $85,000 of income.
| Annual income (AGI) | RAP monthly | IBR monthly | RAP lifetime cost | IBR lifetime cost | Forgiven under RAP | Forgiven under IBR |
|---|---|---|---|---|---|---|
| $40,000 | $100 | $134 | $44,161 | $55,058 | $41,822 | $105,382 |
| $50,000 | $167 | $217 | $69,161 | $71,432 | $41,823 | $85,275 |
| $60,000 | $250 | $301 | $99,196 | $86,846 | $41,800 | $65,168 |
| $70,000 | $350 | $384 | $131,378 | $98,776 | $24,443 | $30,252 |
| $85,000 | $567 | $509 | $89,118 | $95,517 | nothing, loan repaid | nothing, loan repaid |
| $100,000 | $750 | $634 | $78,706 | $84,148 | nothing, loan repaid | nothing, loan repaid |
Which plan actually costs less over the life of the loan?
Not the one with the lower payment, at middle incomes. At $60,000 of income RAP costs $250 a month against IBR at $301, and yet IBR finishes $12,350 cheaper overall because it forgives 10 years earlier. At $85,000 and above the picture flips again: both plans repay the loan in full, so the higher monthly payment simply retires the balance faster and RAP ends up cheaper.
When does each plan forgive, and what is the tax bill?
IBR forgives at month 240 and RAP at month 360. Forgiveness is treated as taxable income in the year it lands, which is the number most comparisons leave out entirely.
| Annual income (AGI) | RAP forgiveness | Tax on RAP forgiveness | IBR forgiveness | Tax on IBR forgiveness |
|---|---|---|---|---|
| $40,000 | month 360 | $8,161 | month 240 | $22,938 |
| $50,000 | month 360 | $9,161 | month 240 | $19,312 |
| $60,000 | month 360 | $9,196 | month 240 | $14,726 |
| $70,000 | month 360 | $5,378 | month 240 | $6,656 |
| $85,000 | paid off first | none | paid off first | none |
| $100,000 | paid off first | none | paid off first | none |
Married, dependents, older loans
The tables use one borrower, single, with no dependents, on IBR for loans first borrowed on or after July 1, 2014 (10% of discretionary income, forgiveness after 20 years). If you had a federal loan balance before July 1, 2014, IBR is 15% with forgiveness after 25 years; the IBR calculator explains both. Each dependent lowers a RAP payment by $50 a month, and a larger family raises the poverty line IBR subtracts; see the discretionary income calculator. Married? Filing separately can change both payments. A federal loan made on or after July 1, 2026 can use RAP or the Tiered Standard plan, not IBR.
Frequently asked questions about RAP and IBR
Is RAP or IBR cheaper?
It depends on your income, and the two plans cross over. On a $60,000 balance at 6.5% as a single filer, RAP is the lower monthly payment up to about $70,000 of income ($250 against $301 at $60,000), and IBR becomes the lower payment above that ($509 against $567 at $85,000).
Does the lower monthly payment mean a lower total cost?
No, and this is where the two plans diverge most. At $60,000 of income RAP costs $250 monthly against IBR at $301, yet IBR finishes cheaper over the life of the loan ($86,846 against $99,196) because IBR forgives the remaining balance at month 240 while RAP runs to month 360.
When does each plan forgive the remaining balance?
IBR forgives at month 240, which is 20 years of qualifying payments. RAP forgives at month 360, which is 30 years. At higher incomes neither reaches forgiveness because the loan is repaid first.
Will I owe tax on the forgiven amount?
Under current federal rules the forgiven balance on these plans is treated as taxable income in the year it is forgiven, and the bill can be large. At $40,000 of income the engine projects $41,822 forgiven under RAP with $8,161 of tax, against $105,382 forgiven under IBR with $22,938 of tax.
Can I still enroll in PAYE or ICR instead?
Yes, if you have taken no new loan, including a consolidation loan, on or after July 1, 2026. PAYE also requires that you are a PAYE new borrower: no outstanding Direct or FFEL balance when you received a Direct or FFEL loan on or after October 1, 2007, and a Direct Loan disbursed on or after October 1, 2011. Both plans end no later than July 1, 2028.
Are these the same numbers a financial advisor would use?
Yes. Every figure on this page comes from the same engine that serves advisors inside Finology Software, and each plan row is checked against the parity oracle before it is published.