RAP vs. IBR – How to Pick the Best Plan for You

This article is for borrowers who took out all their loans before July 1, 2026 and need a monthly student loan payment tied to their current income. If that’s you, you’re likely comparing two repayment plans: the new Repayment Assistance Plan (RAP) and the legacy Income-Based Repayment (IBR) plan.

RAP and IBR are designed to assist borrowers struggling with their student loans. While they both feature lower monthly payments, each offers unique features that can set you up for long-term success. How do you choose between them?

Put Your Decision in Perspective

Your goal is to make the best possible decision for you TODAY. If your situation changes, you can switch to a different repayment plan that better meets the needs of your future self.

Picking RAP or IBR today won’t limit your choice of repayment plans in the future. You can switch from RAP to IBR and vice versa. You can even switch to the Standard Repayment plan.

To make the best choice for today, answer these questions:

1. Which plans can I afford? You need monthly payments that fit your budget. If you can’t afford a plan’s payments, its other features don’t matter.
2. Which plan helps me reach my long-term goal? RAP and IBR have unique features that can help get you closer to your ultimate goals. Understanding what each plan offers can help you align your short-term and long-term goals.

If you don’t have a long-term student loan goal, take time to define it. Examples include:

• Pursuing loan forgiveness
• Protecting yourself from out-of-control interest
• Paying your debt off as quickly as possible

A goal of simply maintaining regular payments into the foreseeable future is also valid.

Estimating Payment Amounts and Total Cost

Use the Federal Student Aid (FSA) Repayment Calculator to estimate your monthly payment amount for different plans. The calculator will provide results based on your actual loan data if you log in with your FSA ID. You can also enter the info manually, but results might be less accurate.

While you’re in the Repayment Calculator, take a look at two other important figures:

• “Total to Be Paid”— The amount you’ll pay on the loan over the entire repayment period. This is an estimate that assumes your income and monthly payments will increase over time. Your actual total repayment cost might be higher or lower.
• “End of Term Date”— The estimated year you’ll pay off your student loans. It’s based on the same formulas used for “Total to Be Paid.”

Loan Forgiveness

Both RAP and IBR are Income-Driven Repayment (IDR) plans. That means they offer loan forgiveness. Take these points into consideration:

• IBR provides a quicker path to forgiveness — RAP requires borrowers to make 30 years of on-time payments before they receive loan forgiveness. IBR requires only 20 years of payments (25 years if you received student loans before July 1, 2014).
• Past payments may count — Payments made on your current repayment plan may count toward loan forgiveness on your new plan. Contact your loan servicer to ask how previous payments will be credited toward loan forgiveness on the RAP and IBR plans.
• Public Service Loan Forgiveness (PSLF) — Both the RAP and IBR plans are compatible with PSLF rules and will allow you to work toward PSLF loan forgiveness.

If your long-term goal is loan forgiveness, IBR might be your best path. Even if forgiveness is a secondary goal, ask your loan servicer how switching plans will affect your progress toward loan forgiveness before committing to RAP or IBR. Make sure any past qualifying payments are credited toward your new plan.

Special Features of RAP

RAP offers two built-in protections that can keep your balance under control:

• Interest subsidy — Your student loan account is charged interest each month. If your monthly payment is lower than the interest amount, you will be forgiven the difference. That prevents your total debt from growing.
• Principal matching — If your payment doesn't reduce your principal by at least $50, the government makes a matching contribution of up to $50 toward your principal. For example, if you make a $20 payment, the government will put an additional $20 toward your principal.

IBR doesn’t offer these protections. If controlling the growth of your total debt is your primary long-term goal, consider that a point for RAP.

What’s Your Best Choice for Today?

After researching the costs and long-term benefits of each plan, you’re ready to make a decision. You’re likely in one of three situations:

• Only one of the repayment plans fits into your current budget. Easy choice. Making your monthly payment takes priority.
• The plan with the lowest monthly payment aligns with your future goals. Great! You have a clear winner.
• The plan with the higher monthly payment is a better fit for your future goals. You have one more question to answer: Is the higher payment worth the long-term payoff?

Apply for Your New Plan

Once you pick a plan that fits your needs, you have to apply for it. The IDR application at StudentAid.gov is the easiest method. Log in with your FSA ID and the online application will pull your loan data from your FSA account. You can also authorize the site to pull income and dependent info from your IRS account, which will save you time in the future.

If you can’t use the online form, download a paper form from the FSA’s forms library. Look under the “Loan Repayment” menu. Both English- and Spanish-language forms are available.

Where to Get Help

Have a problem this article doesn’t address? Need guidance on choosing a repayment plan? You can get help through multiple channels:

• Your student loan servicer — Your servicer is legally required to assist you for FREE. If you don’t know who your loan servicer is, follow these instructions. If calling your servicer feels intimidating, read our tips on how to make your call less stressful.
• Student Connections — Call (866) 311-9450 to talk to one of our Borrower Advocates. They’re trained to help you choose the plan that best fits your needs. They’ll listen to you, consider your situation, and provide guidance on next steps. Our services are paid for by schools across the country and are FREE to you.

Watch Out for Scams

Is someone asking you to pay a fee for a service related to your student loans? Block and report. They’re either a scammer or a company trying to charge you for something your loan servicer does for free.

If Student Connections contacts you, we will NEVER ask for payment of any kind. Read this article for more tips on protecting yourself from student loan scams.