RAP vs IBR (2026 rules): which repayment plan is cheaper?

How RAP works

The Repayment Assistance Plan (RAP) launched July 1, 2026. Your payment is a percentage of your total adjusted gross income (AGI) on a sliding scale — from 1% at low incomes up to 10% once you earn over about $100,000 — reduced by $50 per dependent child — but never below a $10 monthly minimum, and if a payment covers less than $50 of principal in a month the government matches the shortfall (up to $50). There is no payment cap, so the payment keeps rising with income. Its key benefit: RAP waives unpaid interest, so the balance doesn’t snowball. Forgiveness comes after 30 years, or 120 payments under PSLF. One filing nuance worth knowing: RAP counts your spouse’s income regardless of how you file, so married-filing-separately lowers an IBR payment but not a RAP payment.

How IBR works

Income-Based Repayment (IBR) charges 10% of your discretionary income if you’re a “new borrower” (no federal loan balance as of July 1, 2014 — which describes most current residents and attendings), or 15% otherwise. Discretionary income is your AGI minus 150% of the federal poverty line for your family size. Critically, IBR is capped at the standard 10-year payment, so it can never exceed the standard amount. Forgiveness comes after 20 years for new borrowers (25 for older borrowers), or 120 payments under PSLF.

RAP vs IBR at a glance

RAP vs IBR monthly payment, by income

Example: a $300,000 balance at 7.5%, family size 1, not pursuing PSLF. RAP is a share of your total AGI; IBR is 10% of discretionary income, capped at the 10-year Standard payment (about $3,561/mo here). This compares monthly payment only — total cost also depends on interest and any forgiveness, so run your own numbers.

On payment size alone, IBR runs roughly $195–200/month below RAP at every attending income here, because IBR is charged on discretionary income (after the poverty-line deduction) while RAP is charged on total AGI. RAP doesn’t reach IBR’s capped payment until income passes about $427,000. (Payments computed by the AttendingFi engine, June 2026.)

Who each plan favors

IBR tends to win for high earners with a moderate balance, because the 10-year Standard cap freezes the payment while RAP’s keeps climbing. A $300k attending can hit that cap.

RAP tends to win in low-income years (residency, fellowship, a non-working spouse) and when the balance is large relative to income, because the interest waiver stops the balance from growing.

The PSLF angle

If you’re pursuing PSLF, both RAP and IBR generate qualifying payments — so you usually want whichever produces the lowest payment for 120 months, since the remaining balance is forgiven tax-free anyway. For most trainees that’s IBR; confirm on your numbers. Two one-way doors: PAYE and ICR are being phased out by 2028, making IBR the durable choice; and once you’re on RAP you cannot switch back to the standard plan.

Frequently asked questions

Is RAP or IBR better for PSLF?

For PSLF you generally want the lowest monthly payment over your 120 qualifying payments, because the remaining balance is forgiven tax-free regardless of plan. For most residents and many attendings that is IBR, but it depends on your income and balance, so model both.

Is the new IBR the same as PAYE?

No. PAYE and ICR are being phased out by 2028, while IBR is staying, which is why IBR is the durable income-driven plan. New-borrower IBR uses 10% of discretionary income with a 20-year forgiveness term.

Can I switch from RAP back to the standard plan?

No. Once you enroll in RAP you cannot return to the standard plan, so model the long-term cost before choosing it.

Does RAP really have no payment cap?

Yes. RAP is a straight percentage of total income with no ceiling, so a high earner's RAP payment can exceed the 10-year standard amount, which is exactly why IBR's cap can make IBR cheaper at attending income.