How is the IBR payment calculated?

Subtract 150% of the HHS poverty guideline for your household size and state from your AGI. Take 15% of what is left (10% if you had no federal loan balance before 1 July 2014), and divide by 12. The payment never goes above the 10-year standard payment worked out when you entered IBR.

Can new loans use IBR?

No. Only Direct Loans made before 1 July 2026 can be repaid under IBR. Borrowers with a loan made on or after that date can choose RAP or the Tiered Standard plan.

Is RAP or IBR cheaper?

It depends on the numbers. RAP takes 1% to 10% of your whole AGI, minus $50 a month per dependent, and has no cap. IBR takes 10% or 15% of AGI above 150% of the poverty guideline, capped at the 10-year standard payment. Lower incomes and people with dependents often see a lower RAP payment; higher incomes with large balances often see IBR reach its cap. Run your own numbers above and confirm on StudentAid.gov.

Can I still choose IBR?

Only for Direct Loans made before 1 July 2026. Once you receive any new Direct Loan on or after 1 July 2026, your choices are RAP or the Tiered Standard plan.

What is the RAP principal match?

If an on-time RAP payment lowers your principal by less than $50, the Department reduces principal by the lesser of $50 or your payment, minus what your payment put toward principal. Unpaid interest for that month is also waived.

Does filing taxes jointly change my RAP payment?

Yes. On a joint return RAP and IBR use the couple's combined AGI, then multiply the payment by your share of the couple's eligible federal loan balances. Filing separately uses only your own AGI.

IBR Calculator 2026: Income-Based Repayment

Your AGI (last tax return)

Household size

2

IBR-eligible balance

Average interest rate

Your federal loans

State

Tax filing

Household size: you, a spouse if you file jointly, your children you support, and others who live with you and get more than half their support from you.

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Official estimate: StudentAid.gov Loan Simulator. Compare IBR with RAP on the comparison page.

Income growth per year

IDR payments already counted

How the IBR payment works

Start with your AGI (combined with your spouse's if you file jointly). Subtract 150% of the HHS poverty guideline for your household size; for 2026 in the 48 states and DC that is $23,940 for one person plus $8,520 for each extra person. Take 15% of the rest if you had a federal loan balance before 1 Jul 2014, or 10% if you didn't, and divide by 12.

The payment is capped at what you would have paid on the 10-year Standard plan for the balance you had when you entered IBR. A calculated payment under $5 becomes $0; $5 to $10 becomes $10. Joint filers' payments are split by each spouse's share of the eligible balances.

The balance left is forgiven after 240 payments (10% borrowers) or 300 payments (15% borrowers). Months with a $0 payment count. Unpaid interest builds up and is added to the balance if you leave the plan.

Household	2026 guideline (48 states)	150% (income protected)

Common questions

Do I need a partial financial hardship? Not any more. From 1 Jul 2026 any Direct Loan borrower with eligible loans made before that date can choose IBR. The cap at the 10-year standard payment still applies.

Can Parent PLUS loans use IBR? No, and neither can a consolidation that repaid a Parent PLUS loan. See the eligibility checker.

Does a new loan end my IBR access? IBR is only for Direct Loans made before 1 Jul 2026. A new Direct Loan made on or after that date cannot use IBR.

Rules: 34 CFR 685.209(b)(1), (b)(4), (b)(9), (b)(13), (c)(3), (d)(2), (d)(5), (f)(2)–(3), (g)(1), (k)(1)–(2), as amended 1 Jul 2026 (eCFR up to date as of 20 Oct 2026). Poverty guidelines: HHS, Federal Register 15 Jan 2026.

IBR payment calculator

How the IBR payment works

Common questions