FAFSA Updates

RAP vs. IBR, PAYE, and ICR Calculator

The Repayment Assistance Plan (RAP) is the income-driven plan created by the One Big Beautiful Bill Act. It's the only income-driven option for anyone with a loan first disbursed on or after July 1, 2026. Borrowers whose loans all came earlier can also choose IBR, while ICR and PAYE close to them on July 1, 2028. This calculator estimates what you'd pay under each plan.

By Moises Lopez, Educator (10+ yrs, LAUSD & nonprofits) · Published

Important: FAFSA Updates is an independent educational resource and is not affiliated with the U.S. Department of Education or any government agency. This calculator gives estimates for informational purposes only and is not financial or legal advice. Your school and your loan servicer make the actual determinations.

Calculator

Compare your monthly payment and lifetime cost under the new Repayment Assistance Plan (RAP) versus legacy IDR plans. RAP is the only income-driven plan for loans made on or after July 1, 2026. Borrowers whose loans were all disbursed before that date keep IBR, while ICR and PAYE close to them on July 1, 2028. Taking out any new loan limits all of your Direct Loans to RAP or the Tiered Standard Plan. SAVE has ended and is not shown.

RAP interest protection: The government covers any interest a full, on-time payment doesn't, and makes sure your principal drops by at least $50 a month (or by your payment amount, if smaller). Source: P.L. 119-21.
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Use your adjusted gross income from your most recent tax return

$

Including yourself, spouse, and dependents (used for IBR, PAYE, and ICR)

People you claim as dependents — each lowers a RAP payment by $50

2026-27 undergraduate Direct Loan rate is 6.52%

% / yr

The calculator runs entirely in your browser. Nothing you enter is sent anywhere or saved.

How to use it

  1. Enter your total federal Direct Loan balance.
  2. Enter your adjusted gross income (AGI) from your most recent tax return.
  3. Enter your family size, counting yourself, your spouse, and your dependents. IBR, PAYE, and ICR use it.
  4. Enter the number of dependents you claim on your tax return. Each one lowers a RAP payment by $50.
  5. Keep the 6.52% interest rate (the 2026–27 undergraduate rate) or change it to match your loans, then select Compare Repayment Plans.

Worked example

A single borrower with no dependents has an AGI of $55,000 and owes $45,000 at 6.52%. Here is the first-year monthly payment under each plan.

RAP: 5% of $55,000, divided by 12 $229 a month
IBR: 10% of AGI above 150% of the poverty guideline ($23,940), divided by 12 $259 a month
PAYE: same formula as IBR $259 a month
ICR: 20% of AGI above 100% of the poverty guideline ($15,960), divided by 12 $651 a month
10-year Standard payment on this balance (the IBR and PAYE ceiling) $511 a month

At this income, RAP has the lowest monthly payment. The order can flip as income rises, because RAP takes a percentage of your whole AGI while IBR exempts income up to 150% of the poverty guideline. At $85,000 AGI, the same borrower would pay $567 a month under RAP and $509 under IBR, so IBR comes out lower.

How the calculation works

RAP: the payment is a percentage of your full AGI, from 1% just above $10,000 up to 10% above $100,000, divided by 12, minus $50 for each dependent. If your AGI is $10,000 or less, or the result comes out under $10, the payment is $10.

The calculator runs RAP month by month. When a full, on-time payment doesn't cover the interest, the unpaid interest is waived. If a payment doesn't lower the principal by at least $50 (or by the payment amount, if that's smaller), the government covers the difference. Any balance left after 360 payments over 30 years is shown as forgiven.

IBR and PAYE: 10% of discretionary income, meaning AGI above 150% of the 2026 poverty guideline for your family size ($15,960 for one person plus $5,680 for each additional person, in the 48 contiguous states and DC), divided by 12. The payment never exceeds what you'd pay on the 10-year Standard plan for the balance you entered. Under either plan, any remaining balance is forgiven after 20 years.

ICR: 20% of AGI above 100% of the poverty guideline, divided by 12, with forgiveness after 25 years. Plans are ranked by the total you'd pay over the life of the loan.

What the calculator can't tell you

  • Changes over time. It holds your income and family size steady. Real payments are recalculated every year.
  • Which plan is best for you. It ranks plans by total paid, so a plan with high monthly payments can come out on top simply because it pays the loan off sooner.
  • Older IBR terms. IBR is shown on the terms for borrowers whose first loans came on or after July 1, 2014. If you borrowed before then, IBR takes 15% of discretionary income over 25 years.
  • ICR's second formula. ICR is actually the lesser of the amount shown or a 12-year payment adjusted by an income factor that the Department of Education publishes each year, so your ICR payment could be lower.
  • Married borrowers, other plans, and taxes. It doesn't model a spouse's income or loans, the Tiered Standard Plan, or Public Service Loan Forgiveness. Outside PSLF, forgiven balances may be taxable.

Sources

Checked against these sources on September 24, 2026. If something here looks wrong, please tell us through the contact page.