The short answer: for most single borrowers earning under about $80,000, RAP has the lower monthly payment. Above that, IBR (2014 cohort) is usually cheaper. And if you are in the older 15% IBR cohort, RAP beats your payment at nearly every income level. The details, with verified numbers, are below.
Two very different formulas
IBR protects a chunk of your income first. It takes your AGI, subtracts 150% of the federal poverty line for your family size ($23,940 for a single person in 2026), and charges 10% of what is left if you first borrowed on or after July 1, 2014, or 15% if you borrowed before that. Payments are capped at the 10-year Standard amount for your balance.
RAP, the new default income-driven plan as of July 1, 2026, works from dollar one. There is no poverty-line shelter. Instead, your payment is a tiered percentage of your full AGI: 1% if you earn just over $10,000, rising one point per $10,000 bracket, capped at 10% above $100,000. You then subtract $50 per month for each dependent, with a $10 monthly minimum.
The numbers, side by side
Monthly payments for a single borrower with no dependents, using 2026 poverty guidelines. These figures come from the same calculation engine that powers Finology Software, verified against the statutory formulas.
| AGI | RAP | IBR (2014 cohort, 10%) | IBR (2009 cohort, 15%) |
|---|---|---|---|
| $40,000 | $100 | $134 | $201 |
| $60,000 | $250 | $301 | $451 |
| $80,000 | $467 | $467 | $701 |
| $100,000 | $750 | $634 | $951 |
| $150,000 | $1,250 | $1,051 | $1,576 |
The crossover for the 2014 cohort sits right around $80,000: below it RAP is cheaper, above it IBR wins. For the 2009 cohort the picture is starker. The 15% rate means RAP is the lower payment at every income in this table.
Payment is not the whole decision
- Forgiveness clock: IBR forgives after 20 years (2014 cohort) or 25 years (2009 cohort). RAP runs 30 years. A lower payment on RAP can still mean paying more over a lifetime, or the reverse if forgiveness was never realistic for your balance.
- Interest treatment: RAP waives unpaid interest each month and adds a $50 minimum principal credit, so balances on RAP do not balloon. On IBR, unpaid interest accrues.
- PSLF: both plans count. If you are pursuing Public Service Loan Forgiveness, the cheaper monthly payment is usually the right pick, since the balance is forgiven at 120 payments either way.
- Dependents and marriage: RAP gives $50 per month per dependent; IBR shelters more income as family size grows. Married filing separately excludes spousal income under both plans, but changes the bracket math differently.
IBR is staying, and unlike PAYE and ICR it remains open to new enrollment. That makes RAP vs IBR the comparison that matters for most borrowers choosing a plan after July 1, 2026. For the full picture of what changed, see our July 1 explainer, run your own income through the RAP payment calculator, and if you decide to move, here is how to switch step by step.
For financial advisors: this crossover math changes with every client’s income path, family size, filing status, and forgiveness horizon. Finology Software models RAP, IBR, PAYE, ICR, and PSLF side by side with provably correct numbers, so you can show a client the full lifetime cost of each path in minutes. Start your free trial.
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Every number sourced, every path compared. Model RAP, the new Standard, IBR, PAYE, ICR and PSLF side by side.
