Question 1

Is RAP or IBR cheaper?

Accepted Answer

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.

Question 2

Can I still choose IBR?

Accepted Answer

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.

Question 3

What is the RAP principal match?

Accepted Answer

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.

Question 4

Does filing taxes jointly change my RAP payment?

Accepted Answer

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.

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