STUDENT LOAN RAP VS IBR VS STANDARD · RUNS IN YOUR BROWSER · NOTHING UPLOADED

Which student loan repayment plan costs you the least?

Type your balance, rate and income. The tool runs the tiered Standard plan, the Repayment Assistance Plan (RAP) and Income-Based Repayment (IBR) month by month and shows each plan's first payment, total paid, amount forgiven and the net cost after tax on forgiveness, plus what Public Service Loan Forgiveness would change.

Arithmetic on assumptions you type, using plan rules as of October 2026 that you can overwrite. Not tax, legal or financial advice. The example figures are placeholders, not a quote or a forecast.

1. Your loans

2. Your income

3. Plan terms and taxes

Questions people ask

Which student loan repayment plan is cheapest?

It depends on your balance, rate, income and how fast your income grows. This tool runs the tiered Standard plan, the new Repayment Assistance Plan (RAP) and Income-Based Repayment (IBR) month by month and shows the first payment, the total you pay, the amount forgiven and the net cost after tax on forgiveness, so you can see which plan costs least on your numbers.

How is the RAP payment calculated?

RAP takes a percentage of your adjusted gross income, from 1% in the $10,000 to $20,000 band up to 10% above $100,000, divides it by 12 and subtracts $50 for each dependent, with a $10 monthly minimum. Interest your payment does not cover is waived, and the government matches principal reduction up to $50 a month. Forgiveness comes after 360 qualifying payments.

How does IBR differ from RAP?

IBR charges 10% (newer borrowers, forgiven after 20 years) or 15% (older borrowers, 25 years) of income above 150% of the poverty guideline, capped at the 10-year standard payment. Unpaid interest keeps accruing but is not capitalized, so the balance can grow. RAP waives unpaid interest instead.

Is forgiven student loan debt taxable?

Outside Public Service Loan Forgiveness, forgiveness under income-driven plans is treated as taxable federal income from 2026. The tool lets you type a tax rate and adds the tax on the forgiven amount to the net cost. PSLF forgiveness is tax-free.

How does Public Service Loan Forgiveness change the answer?

With PSLF mode on, RAP and IBR are cut off at 120 qualifying payments and the rest is forgiven tax-free, so the lowest-payment plan usually wins. You must work full time for a qualifying employer and certify your employment; the tool does not check eligibility.

Is this financial advice?

No. It is arithmetic on figures you type and on rules that Congress and the Department of Education can change. Poverty guidelines, plan terms and tax treatment are editable defaults. Confirm your plan options with your loan servicer and a qualified adviser before switching plans.

Not decided

Whether you should switch plans. The model pools your loans into one balance and rate, ignores Parent PLUS and consolidation timing, married-filing-separately strategy, partner income, state taxes on forgiveness, interest subsidies on older plans, the effect of refinancing to a private lender (which forfeits federal protections), and any rule change after the date above. Check your servicer's loan simulator and the Department of Education before acting.

Related tools: the college aid award letter comparator (what the loans on an offer cost before you borrow them), the PSLF vs refinance calculator, the estimated tax penalty calculator and the job offer total compensation calculator.